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Transcribed photo text: 1. Bank overdrafts, if material, should be reported together a deduction native the current asset section. Reported together a deduction from cash. Netted against cash and a net cash quantity reported. Reported as a present liability. A. B. C. D. The accounting for cash discounts and also trade discounts space 2. The same constantly recorded net. Not the same. Tied to the timing of cash collections on the account. A. B. C. D. 3. What is the regular journal entry once writing-off an account as uncollectible under the pin money method? a. Debit allowance for cynical Accounts, credit transaction Accounts Receivable. B. Debit pin money for hesitant Accounts, credit negative Debt Expense. C. Debit bad Debt Expense, credit transaction Allowance for unconvinced Accounts. D. Debit account Receivable, credit transaction Allowance for skeptical Accounts 4. I m sorry of the complying with is not true? The imprest small cash system in impact adheres to the dominion of disbursement by check. Entries are made to the petty Cash account just to boost or diminish the dimension of the fund or to adjust the balance if no replenished at year-end. The small Cash account is debited once the money is replenished. All of these are not true. A. B. C. D. 5. A Cash Over and also Short account is not usually accepted. Is debited when the small cash money proves the end over. Is debited when the petty cash money proves out short. Is a contra account to Cash. A. B. C. D. Kennison agency has cash in bank of $15,000, limited cash in a different account that $3,000, and also a financial institution overdraft in an account at one more bank the $1,000. Kennison must report cash of 6. A. $14,000. B. $17,000. C. $15,000. D. $18,000. 7. In preparing its respectable 31, 20x2 financial institution reconciliation, ice Corp. Has easily accessible the complying with information: Balance per bank statement, 8/31/x2 Deposit in transit, 8/31/x2 Return that customer's examine for inadequate funds, 8/30/x2 superior checks, 8/31/x2 bank service charges because that August $18,650 3,900 600 2,750 100 in ~ August 31, 20x2, Bing's correct cash balance is a. $19,800. B. $19,100. C. $19,200 d. $17,500. 8. Ace Co. Ready an aging the its account receivable in ~ December 31, 20x2 and determined the the net realizable value of the receivables was $600,000. Extr information is easily accessible as follows: pin money for uncollectible accounts at 1/1/x2-credit balance Accounts created off together uncollectible during 20x2 accounts receivable at 12/31/x2 Uncollectible account recovered throughout 20x2 $68,000 46,000 650,000 10,000 because that the year finished December 31, 20x2, Ace's uncollectible accounts expense would it is in a. $50,000. B. $46,000. C. $32,000. D. $18,000. AG Inc. Make a $15,000 revenue on account through the complying with terms: 2/10, n/30. If the company uses the net an approach to record sales do on credit, what is/are the debit(s) in the journal entry to record the sale? 9. Debit account Receivable because that $14,700. Debit account Receivable for $14,700 and Sales Discounts for $300. Debit accounts Receivable because that $15,000. Debit account Receivable for $15,000 and Sales Discounts because that $300. A. B. C. D. 10. Becky had net sales (all on account) in 2018 that $600,000. In ~ December 31, 2018, before adjusting entries, the balances in selected accounts were: accounts receivable $750,000 debit, and also allowance for skeptical accounts $1,500 debit. Becky estimates that 3% of its network sales will certainly prove to be uncollectible. What is the net realizable value of the receivables reported on the financial statements in ~ December 31, 2018? a. $133,500 b. $732,000 $730,500 $733,500 c. D. Ex. 1-Bank Reconciliation and also Adjusting Entries The cash account of environment-friendly Co. Confirmed a ledger balance the $8,650.90 top top November 30, 2018. The financial institution statement as of that date showed a balance the $10,667.00. Top top comparing the statement v the cash records, the complying with facts to be determined. Over there were financial institution service charges because that November the $30. A financial institution memo declared that Solo's keep in mind for $1,500 and interest the $61 had been accumulated on November 3, and the financial institution had make a fee of $8 top top the collection. (No entry had been make on Green's books when Solo's note was sent out to the financial institution for collection.) Receipts because that November 30 for $1,170 were no deposited till December 4. Checks exceptional on November 30 totaled $2,361.20. The financial institution had charged environment-friendly Co.'s account for a customer's uncollectible inspect amounting to $318.00 on November 29 A customer's inspect for $210 had actually been gone into as $240 in the cash receipts journal by green on November 21. Inspect no. 8560 in the quantity of $580 had actually been entered in the cash journal as $850, and check no. 8572 in the amount of $688.00 had been gone into as $68.80. Both checks had been issued to pay for purchases of inventory on account. 1. 2. 3. 4. 5. 6. 7. Indict (a) Prepare a financial institution reconciliation dated November 30, 2018, proceeding to a exactly cash balance. (b) Prepare any kind of entries essential to do the publications correct and also complete. Ex. 2-Entries for negative debt expense. A trial balance prior to adjustment contained the complying with Debit $90,000 credit Accounts receivable pin money for unconvinced accounts Sales Sales discount Sales returns and allowances 830 $350,000 3,000 8,000 give journal entries assuming that the calculation of uncollectible is established by acquisition (1) 5% the gross accounts receivable and (2) 1% of net sales. Ex. 3-Accounts receivable assigned accounts receivable in the lot of $350,000 to be assigned come the fast Finance firm by Marsh, Inc., as security for a loan the $300,000. The finance company charged a 4% the supervisory board on the confront amount that the loan, and the note bears attention at 9% every year. Throughout the first month, Marsh built up $230,000 ~ above assigned accounts. This amount was remitted to the finance firm along through one month's interest on the note. Instructions do all the entries for Marsh Inc. Connected with the transfer of the accounts receivable, the loan, and also the remittance to the finance company. Ex. 4-Factoring accounts Receivable. On might 1, Dexter, Inc. Factored $900,000 of account receivable with quick Finance on a without termination basis. Under the arrangement, Dexter to be to manage disputes worrying service, and Quick Finance was to do the collections, take care of the sales discounts, and absorb the credit losses. Rapid Finance assessed a finance charge of 6% the the full accounts receivable factored and also retained one amount same to 2% of the total receivables to cover sales discounts. Indict (a) Prepare the journal entry compelled on Dexter's books on might 1 (b) Prepare the journal entry required on quick Finance's books on May1 (c) assume Dexter factors the $900,000 of account receivable with rapid Finance on a v recours communication instead. The recourse provision has actually a fair worth of $14,000. Prepare the newspaper entry compelled on Dexters publications on might 1 Ex. 5 -Discount of keep in mind Receivable Sutherland copy, group sold goods to Rice Decorators because that $50,000 top top September 1, 2018, agree Rice's S50.000, 6-month, 6% note. Instructions (a) Prepare Sutherland's September 1 entry, December 31, yearly adjusting entry, and also March 1 entry for the collection of the note and also interest (b) i think Sutherland's discount the note to financial institution of America ~ above December 1, at 10% (discount interest), prepare the entry to record discount the the keep in mind