Finance And Accounting

Question: Henry Stores, Inc. had sales of $2,000,000 during December. Experience has shown that merchandise equaling 7% of the sales will be returned within 30 days and an additional 3% will be returned within 90 days. The returned merchandise is readily resalable. In addition, merchandise equaling 15% of the sales will be exchanged for merchandise of equal or greater value. What amount should the store report as net sales in its income statement for the month of December?
A
$1,800,000

B
$1,700,000

C
$1,560,000

D
$1,500,000

Note: answer not sure
1. Report
Question: Accounts Receivable that arise from the regular sale of merchandise is also referred to as____________
A
Business Receivables

B
Other Receivables

C
Trade Receivables

D
Money Receivable

Note: answer not sure
1. Report
Question: At the end of the fiscal year, before the accounts are adjusted, Account Receivable has a balance of $200,000 and Allowance for Doubtful Accounts has a credit balance of $2500. If the estimate of uncollectible accounts determined by aging the Receivables is $8500, the amount of uncollectible accounts expense will be:
A
$11,000

B
$2,500

C
$8,500

D
$6,000

Note: answer not sure
1. Report
Question: The Sales Returns and Allowances – Account is classified as a/an _________ .
A
Liability Account

B
Contra Revenue

C
Asset Account

D
Revenue Account

Note: answer not sure
1. Report
Question: Bad debts are generally______
A
subtracted from Accounts Receivable

B
added to Accounts Receivable

C
not related to Accounts Receivable

D
None of these

Note: answer not sure
1. Report
Question: Increasing the credit period from 30 to 60 days in response to a similar action taken by all the competitors of a firm will result in:
A
an increase in the average collection period.

B
a decrease in bad debt losses

C
an increase in sales.

D
a higher profit

Note: answer not sure
1. Report
Question: Advances received from the customers are shown_______
A
in the Profit & Loss Account

B
on the Asset side of the balance sheet

C
on the Liability side of the balance sheet

D
in both the P&L account and the balance sheet

Note: answer not sure
1. Report
Question: Which two of the following key attributes of a quotation promote excellent receivable results? 1.Feasibility/ deliverability of the offer 2.Payment terms 3.Clear commercial terms and conditions agreed upon by both the parties. 4.Applicable sales (or) use tax
A
1&2

B
2&3

C
1&3

D
None of these

Note: answer not sure
1. Report
Question: Allowance for doubtful accounts is ________
A
the total of the accounts that will not be collected

B
a contingent liability

C
a contra-owner's equity account like withdrawals

D
the estimated amount of Accounts Receivable that will not be collected

Note: answer not sure
1. Report
Question: Companies that do not carry enough inventory will incur _______
A
lost sales

B
low employee morale

C
worker layoffs

D
All of these

Note: answer not sure
1. Report

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Question: Accounts Receivable that arise from the regular sale of merchandise is also referred to as____________

Question: The Sales Returns and Allowances – Account is classified as a/an _________ .

Question: Bad debts are generally______

Question: Increasing the credit period from 30 to 60 days in response to a similar action taken by all the competitors of a firm will result in:

Question: Advances received from the customers are shown_______

Question: Which two of the following key attributes of a quotation promote excellent receivable results? 1.Feasibility/ deliverability of the offer 2.Payment terms 3.Clear commercial terms and conditions agreed upon by both the parties. 4.Applicable sales (or) use tax

Question: Allowance for doubtful accounts is ________

Question: Companies that do not carry enough inventory will incur _______