ACCOUNTING-This quiz is to be completed without the assistance of any other person.

Due
by Sunday, October11, 2015
(11:59 pm EST)

Name:
Date:

This quiz consists of 3 multiple choice questions and 4
problems. All parts must be
completed.
Instructions:

Complete this quiz in one sitting.

YOU MUST SHOW ALL WORK FOR THE PROBLEMS!!

This quiz
is to be completed without the assistance of any other person.

You may
use only the resources provided by your instructor for this class.

You may
create an Excel and / or Word File for your work. Please verify that each page
prints out formatted with your name and page number on the page.

Save your
work (include your name in the filename) and upload for grading.

You may
only submit this quiz once.

I pledge on my honor that I have not given or received any unauthorized
assistance on this examination. In
addition, I pledge that I will not disclose to, or discuss the contents of this
examination with, students who have not taken it.
­­­­­­­­­­­­­­­­­­­­­­­_________________________________________________________________________
Signed

Multiple Choice (7 points each)

1. DeVries
uses an allowance method for recording bad debts. DeVries determined that $1,000 of accounts
receivable from Morris Corporation are uncollectible. The entry DeVries should make to write off
the Morris account would include:

A. a credit to Cash for $1,000.
B. a credit to Allowance for Uncollectible
Accounts for $1,000.
C. a credit to Accounts Receivable for $1,000.
D. a credit to Uncollectible Accounts Expense
for $1,000.
E. None of these.

2. Inventory
accounts are classified in which section of the balance sheet?

A. Current assets.
B. Investments.
C. Property, plant, and equipment.
D. Intangible assets.
E. None of these.

3. Inventory Item A has a cost of $2,000. The replacement cost is $1,800. The item can be sold for $2,500 to a
customer, and the normal profit margin is $1,000. Using the lower-of-cost-or-market rule, at
what amount should this item be reported in inventory on the balance sheet?

A. $1,800
B. $2,000
C. $2,500
D. $1,000

Problem #1 (16 points)
Annual sales were $1,600,000, and the January 1
Allowance for Uncollectibles had a credit balance of $25,000. $18,600 of accounts were written off during
the year. The provision for uncollectible
accounts is based on % of sales. Using
the percentage of sales technique and a 2% rate, complete the following:

Required
1. Prepare the entry to record the accounts written off
during the year.
2. Prepare the entry to record the provision for
uncollectibles.

Problem
#2 (17 points)
Hall uses aging to estimate uncollectible accounts. The following table reveals the likelihood of
collection:

Age

Probability
of Collection

Amount
Outstanding

0 to 30 Days

98%

$100,000

31 to 60 Days

90%

$50,000

61 to 120 Days

50%

$25,000

Over 120 Days

10%

$10,000

Accounts of $100,000 are less than 30 days old (98%
collectible), $50,000 are 30 to 60 days old (90% collectible), $25,000 are
61-120 days old (50% collectible), and the remaining $10,000 is 10%
collectible.

Required

1. Prepare
the journal entry to update the allowance for uncollectibles, assuming the
balance prior to aging was a $10,000 debit.
2. Prepare
the journal entry to update the allowance for uncollectibles, assuming the
balance prior to aging was a $1,000 credit.
Problem
#3 (30 points)
Alta had beginning inventory of 100 units at $10
each. The purchase price increased
steadily during the period. Purchases during the period were 200 at $11 each,
300 at $13 each, and 150 at $15 each.
Sales were 500 units at $20.
Using periodic FIFO:

Required:
1. Using periodic FIFO:
a. Determine the cost of the ending inventory
b. Determine the cost of the goods sold
c. Determine the Gross profit
2. Using periodic LIFO:
a. Determine the cost of the ending inventory
b. Determine the cost of the goods sold
c. Determine the Gross profit
3. Using periodic weighted average:
a. Determine the cost of the ending inventory
b. Determine the cost of the goods sold
c. Determine the Gross profit

Problem
#4 (16 points)
A company’s records show the following:

Ending
balance per bank statement

$
22,484

Add:
Deposits in transit

1,776

Deduct: Outstanding checks

#12221

( 4,717)

Correct
cash balance

$
19,543

Ending
balance per company records

$
14,344

Add:

Note
receivable collection

$
5,450.00

Interest
earnings

106.00

5,556

Deduct:

NSF Checks (customer collections on account)

322.00

Service charges

35.00

(357.00)

Correct cash balance

$19,543

Required
Prepare the entry to record the adjustments
necessitated by the bank reconciliation.

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