Question :
167. As of December 31, 2011, Chippewa Company has $26,440 cash : 1229761
167. As of December 31, 2011, Chippewa Company has $26,440 cash in its checking account, as well as several other items listed below:
What amount should be shown in Chippewa’s December 31, 2011, balance sheet as “Cash and cash equivalents”?
A. $30,040.
B. $139,640.
C. $209,640.
D. $59,640.
168. On January 1, Wilson Company established a petty cash fund of $400. The journal entry to record the replenishment of the fund for $280 at the end of January includes:
A. A debit to Petty Cash of $280.
B. A credit to Cash of $280.
C. A debit to various expenses of $120.
D. No journal entry; an entry is needed only when the petty cash fund is created or discontinued.
At the end of March, the unadjusted trial balance of Tutor, Inc. included the following accounts:
169. Tutor uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $8,600. What is the amount of uncollectible accounts expense recognized in Tutor’s income statement for March?
A. $8,600.
B. $6,800.
C. $10,400.
D. $1,800.
170. Tutor uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400. The net realizable value of Tutor’s accounts receivable in the March 31 balance sheet is:
A. $247,400.
B. $240,000.
C. $232,600.
D. $352,600.
171. Tutor uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 3% of credit sales. What is the amount of uncollectible accounts expense recognized in Tutor’s income statement for March?
A. $13,500.
B. $18,000.
C. $8,600.
D. $7,200.
172. Tutor uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 3% of credit sales. The net realizable value of Tutor’s accounts receivable in the March 31 balance sheet is:
A. $251,800.
B. $253,500.
C. $224,700.
D. $255,300.
173. Dorfmann Industries has an accounts receivable turnover rate of 12. Which of the following statements is not true?
A. Dorfmann’s accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 8.
B. Dorfmann waits approximately 30 days to make collections of its credit sales. (Use 365 days in a year.)
C. Dorfmann writes off accounts receivable as uncollectible if they are over 30 days old.
D. Dorfmann’s net credit sales are about twelve times the amount of its average accounts receivable.
174. Watins, Inc.’s 2011 income statement reported net sales of $5,000,000. Watin’s average accounts receivable during 2011 amounted to $450,000. Using 360 days to a year, Watin’s:
A. Accounts receivable turnover rate is approximately 13.8 times.
B. Accounts receivable turnover rate is approximately 1.25 times.
C. Average number of days to collect an account receivable is 32 days.
D. Accounts receivable turnover rate is approximately 2 times.
175. Assuming a 365 day year, Bush Industries calculated an average of 47 days to collect its accounts receivable in 2012. During 2012, Bush’s accounts receivable turnover rate:
A. Was approximately 7.77.
B. Was equal to 47 times its average accounts receivable.
C. Was approximately 0.13.
D. Can’t be determined from this information alone.
176. If a 5%, 120-day note receivable is acquired from a customer in settlement of an existing account receivable of $50,000, the accounting entry for acquisition of the note will:
A. Include a debit to Notes Receivable for $50,822.
B. Include a debit to Notes Receivable for $50,208.
C. Include a credit to Interest Revenue for $822.
D. Include a debit to Notes Receivable for $50,000 and no entry for interest.
177. Silver Company received a 60-day, 6% note for $16,000 on August 5. Which of the following statements is true?
A. Silver will receive $16,000 plus interest of $960 at maturity.
B. Silver should record a total receivable due of $16,080 on August 5.
C. The principal of the note plus interest is due on October 15.
D. The maturity value of this note is $16,000.
