Question

15. If merchandise is sold on account to a customer for $4,000, terms FOB shipping point, 1/10, n/30, under perpetual system, the amount credited to the Sales Revenue account would be a. $4,000 b. $3,960 e. 53,600 d. $40 16. Cost of goods sold if found by using the cost of newest items when a company uses: a LIFO b FIFO c Weighted average cost d. Specific identification 17. In a period of inflation (unit prices rising over time), which of the following inventory methods generally results in the highest balance sheet figure for ending inventory? a Weighted average cost b. FIFO c. LIFO d. Cannot tell without more information 18. A car dealer probably would use which of the following inventory costing methods? Weighted average cost b. LIFO a. c. FIFO d. Specific identification 19. Which of the following statements is TRUE about cash equivalents? a. They are synonym term for Accounts Receivable. b. They will be converted to cash within three months or less c. They will be converted to cash within one six months or less. d. They will be converted to cash within one year or less. 20. What is the maturity date of a $10,000, 90-day, 12 % , note receivable datedAugust 57 a. October 28 b. November 2 November 3 d. November 4 c. hich of the following is TRUE about the Allowance for Doubtful Accounts? It has a normal credit balance. b. It has a normal debit balance. It is a contra-revenue account. It is an asset account. a.

Answer 1

Answer 15
Accounts receivable	4000
Sales revenue		4000
Option A is correct.
Answer 16
Option A is correct.
Answer 17
Option B is correct.
as ending inventory consist of newest purchased items.
Answer 18
Option D is correct.
Answer 19
Option B is correct.
Answer 20
Aug.	26 days	( 31 - 5 )
Sept.	30 days
Oct.	31 days
Nov.	3 days
	90 days
3rd nov.
Option C is correct.
Answer 21
It is a contra asset account which can have either credit or debit balance.
None of the options seem to be correct.