Reported on the Income statement as a deduction from sales.
What is Sales Returns and Allowances
100
Upon issuance of a promissory note, Notes Payable will be a credit for what amount?
What is the face value of the note.
100
It shows the financial position of a business at a given time.
What is the balance sheet
100
Amounts that a business must pay in the future are known as what?
What are Accounts Payable
100
Where should outstanding checks be subtracted from when preparing a bank reconciliation?
What is deducted from the bank balance
200
Sales were $50,000 and sales returns and allowances were $4,000. What is the net sales?
What is $46,000
200
Notes payable due within one year are shown here?
What is on the CURRENT LIABILITIES section of the balance sheet.
200
When expenses are greater than revenue it is considered a?
What is a net loss.
200
It shows the results of operations for a period of time.
What is the income statement
200
What is the journal entry to purchase merchandise on credit?
What is a DEBIT to merchandise inventory and a CREDIT to accounts payable
300
Acording to accrual basis accounting, when is it appropriate to recognize revenue from a CREDIT sale?
What is at the date of the sale
300
What is the adjusting entry to record accrued interest on a notes payable?
What is a DEBIT to interest expense and a CREDIT to interest payable
300
What is the accounting equation
What is Assets = Liabilities + Stockholders Equity
300
What is the amount of assets if liabilities are $4,000 and stockholders' equity is $15,000?
What is $19,000
300
A firm wrote a check for $78 but entered the amount as $87, the $9 difference would be added to what?
What is an addition of $9 to the book balance.
400
What is the entry to record a return by a credit customer of defective merchandise on which no sales tax was charged?
What is a DEBIT to sales returns and allowances and a CREDIT to accounts receivable
400
How much interest will accrue on a $20,000, 9%, 60-day note?
What is $300
400
Where assets and liabilities are reported on
What is the balance sheet.
400
What is the journal entry when a firm pays cash to be applied against a debt?
What is a DEBIT to accounts payable and a CREDIT to cash
400
Using LIFO, what is the ending balance of the inventory if:
- Beginning inventory of $4,000 at a cost of $28,000
- 10,000 units were puchased at $9 each
- ending inventroy had $3,000 units
What is $27,000
3,000 units x $9 each
500
The collection of a previously written off uncollectible account requires what first?
What is reinstatement of the A/R
500
Upon collection of a $6,000, 10%, 90-day note, the ACCOUNTS RECEIVABLE is debited for what amount?
What is $6,000
500
Name two examples of Assets
What are cash, A/R, equipment, supplies, land, building.
500
Rent paid for future months is a ?
What is an asset
500
Using LIFO, what is the ending value of 2,000 units if:
- beginning inventory of 4,000 units cost $16,000
- 8,000 units were purchased a $6/each
- ending inventory is 2,000 units