Inventory Costing Methods
Inventory turnover Ratio
What is Cost of Goods Sold/Average Inventory
The day the note must be repaid
What is maturity date?
Left side of a bank reconcilliation
What is the Balance per bank
Type of account for Allowance for Doubtful accounts
What is a contra asset?
What is $1500
What is LIFO
Bank statement you will find note receivables
What is the Balance Sheet
Effect of $300 Deposit in transit
Violation of which principle.
The recordkeeper left town after the owner discovered a large sum of money had disappeared. An audit found that the recordkeeper had written and signed several checks made payable to his fiancée and recorded the checks as salaries expense.
What is separate recordkeeping from custody of assets?
Merchandise sale journal entry. Both are required
Debit Cost of Goods sold
Credit Merchandise Inventory
Debit Accounts Recievable
Credit Sales Revenue
Cost of Goods available for Sale - Ending Inventory
What is Cost of Goods Sold
$2000 120 day note signed on December 13th, with 5% interest. Find accrued interest on December 31st.
What is $5
Book balance: $745
NSF Check: $200
Deposits straight to bank: $425
Check correctly drawn for $200, tracked in accounting records for $210
Adjusted book balance.....
What is $980
Net Realizable Value of Accounts receivable formula
What is Accounts Recievable - Allowance for Doubtful Accounts
Journal entry when receiving a payment outside of discount period
Debit Cash
Credit Accounts Recievable
Which method has the highest net income in a period of rising costs?
Formula for computing interest on a note receivable
What is Principal of the note x annual interest rate x fraction of the year?
Deposits listed on depositors book but not yet on bank statement
Apply technological controls, maintain adequate records, insure assets and bond key employees, Establish responsibilites, separate recordkeeping from custody of assets, Perform regular and independent reviews, divide responsibilites for related transactions
April 3rd: John sold merchandise to Chris under 3/10, n/45 for $4000. This merchandise cost John $2700
April 9th: Chris decided he wanted to return $615 of the merchandise. This merchandise cost Chris $325
April 13th: Chris paid the amount owed.
Create journal entry for April 13th payment if we were John.
Debit Sales Discounts $102
Credit Accounts Recievable $3385
What is the cost per unit for the second sale using the Weighted Average method?
Purchase 1: 25 units @ $16
Purchase 2: 22 units @ $22
Sale 1: 17 Units
Purchase 3: 24 units @ $27
Sale 2: 21 Units
What is $22.40
$4000 60-day note with 8% interest was signed on December 20th. The company makes adjusting journal entry on year end December 31st. How much interest revenue will be credited when the note is repaid on February 18th.
Debit Accounts Recievable 300
Credit Cash 300
Jimmys Burgers predicts $2,000,000 in sales for the year. Allowance for Doutbful Accounts has a $4200 credit balance before year end. Jimmy predicts 5% of all sales uncollectible. Create adjusting bad debt expense entry.
Credit Allowance for Doubtful Accounts $95000
Create journal entry if Merchandise Account has $15000 at end of year but physical count only shows $14500
Debit cost of goods sold 500
Credit Merchandise inventory 500