ACCT 304 WEEK 6 QUIZ

ACCT 304 WEEK 6 QUIZ
Question  1	TCO 7 Compensating balances represent

 	


Question 2.	Question :	(TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?
 

 	



Question 3.	Question :	(TCO 7) Collection of accounts receivable that previously have been written off results in an increase in cash and an increase in

 	



Question 4.	Question :	(TCO 7) Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking account showed a balance of $1,360, and the bank statement showed a bank balance of $1,445. Outstanding checks totaled $350, and deposits in transit were $150. The bank statement listed service charges of $30 and NSF checks totaling $85. The journal entry to correct cash will include

 	


Question 5.	Question :	(TCO 7) At January 1, 2011, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Farley's credit sales have been uncollectible. During 2011, Farley wrote off $650,000 to accounts receivable. Credit sales for 2011 were $18,000,000. In its December 31, 2011 balance sheet, what amount should Farley report as allowance for uncollectible accounts?