Exit Tickets #23 - 24
Cost of Goods Sold is this type of account:
Expense
The _________ is a special journal of accounting used to record all sales made on account.
Sales journal
Purchases is this type of account:
Expense
At 31-60 days overdue, we have $90,000 in uncollected debts. We estimate 15% of them to be uncollectible. What is the bad debts estimate for 31 to 60 days overdue debts?
An accounting method used to expense the cost of a physical asset over its useful life, is called:
Depreciation
This type of business structure has the downside of double taxation where the corporation pays taxes in the shareholders pay taxes on their dividends:
What does 2/10 net 30 mean on an invoice?
2% discount if paid within 10 days of the invoice date and total amount due in 30 days
In a Purchases Journal, what are always your debit and credit?
Purchases Debit & Accounts Payable Credit
The cumulative net profit remaining in a business after all dividends have been paid, is called:
Retained Earnings
The financial statement designed to show the cash inflows and outflows of the company during the period:
Statement of Cash flows
This Of business structure has shareholders but can only have up to 100 shareholders:
S - Corporation
A customer returns merchandise and is issued a cash refund of $56.18. Assuming the customer lives in a state where sales tax is 6%, what is the journal entry used to record this return?
Dr. Sales Returns and Allowances $53.00
Dr. Sales Tax Payable $3.18
Cr. Cash $56.18
What type of account is Purchases Returns and Allowances?
Contra-Expense
There are pros and cons of equity financing. List one 'con' of equity financing.
Shareholder involvement in operations, may end up costing more than financing, giving up ownership in company
Cash Flow from day-to-day operations such as selling goods to customers and paying wages to employees:
Operating activities
A subledger containing all money owed to a company from customers is called the ________:
Accounts Receivable Ledger
A company operating in a state that charges 6% sales tax sells a $100 product that is classified as a non-essential good what is the journal entry used to record the sale assuming the customer pays cash at the point of the sale?
Dr. Cash $106.00
Cr. Sales Revenue $100.00
Cr. Sales Tax Payable $6.00
A company purchases $475 in merchandise on account with payment terms 2/10 net 30. They pay this bill 5 days after receiving it. What is the journal entry used to record this payment?
Dr. Accounts Payable $475
Cr. Purchase Discounts $9.50
Cr. Cash $465.50
On December 28, 2023, Jammer Inc. sold 31,250 shares of $1.00 par value common stock to Greg Shumate at $16.00 per share. What is a journal entry for this?
Dr. Cash $500,000
Cr. Common Stock $31,250
Cr. Paid-In Capital in Excess of Common Stock $468,750
Net cash is calculated with:
Cash inflow - cash outflow
Account ledger forms are similar to general ledger account forms but the subledger account only shows its _______ balance column.
Normal
A company sells $4,000 worth of goods with a 2/10 net 30 payment terms on April 10th. The customer pays this invoice on April 17th. What journal entries used to record this invoice payment?
Dr. Cash $3,920
Dr. Sales Discount $90
Cr. Accounts Receivable $4,000
A company purchases some faulty merchandise on account for $500. The vendor issues a full refund in exchange for the merchandise. How does the company journalize this transaction?
Dr. Accounts Payable $500
Cr. Purchases Returns and Allowances $500
Zendran Inc. determined that Spartan Inc.'s $2,000 invoice from 90 days ago is uncollectible. What is the journal entry to write off this debt?
Dr. Allowance for Doubtful Accounts $2,000
Cr. Accounts Receivable $2,000
Zendran Inc. purchased computers for $6,000 with a useful life of 5 years. The salvage value of the computers is $1,000. What is the annual depreciation expense?
$1,000