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Accounting exam questions

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Question;Already the;Last Exam;Exam #3;1. Explain why a company would offer terms on;their sales invoice such as 2/10, n/30. (10 Points);2. The;HeadSet Company sells headsets (very creative name for a company). The management of the HeadSetcompany does not;like to prepare journal entries so they called you for help..;Following is the information they;provided you;Selling price of Headset is $45;Purchase price for the Headset;is $29.;May;1 Purchased 3,000 Headsets from Vendor;#1 with terms of 2/10, n/30, FOB Destination.;May;2 Freight bill for May 1 purchase was;$350, and was paid on May 2.;May;3 Returned 250 Headsets to Vendor #1;May 10;Paid the amount owed to Vendor #1;May 12;Sold 1,800 Headsets to Customer;Collaborate.;May 14;Customer Collaborate returned 75 injured;Headsets;May 20;Received amount owed from Customer Collaborate;Required;A. Prepare;the journal entries for the above transactions;B. Prepare;a partial income statement (Gross sales through Gross Profit);C. Compute;the gross profit % from your partial income statement;D. Explain;the meaning of your answer in ?C? --- short sentence.;(Total Points for Problem 30);3. The;Did Our Customers Pay on Time Company wants to prepare their aging schedule for;December 3, 2013. They started the aging;schedule but decided to call you to help them finish You are such a nice person;so you said yes. Following is the;information that was provided to you.;Name;Total;Not Past Due;1-30 days Past Due;31 ? 60 Days Past Due;61 -90 Days Past Due;91 ? 120 Days Past Due;Over 120 Days Past Due;Sub Total;$654,000;$320,400;$137,340;$78.480;$52,320;$45,748;$19,620;Estimated % uncollectible;3%;7%;18%;26%;47%;72%;The following customers were not include in the above Aging;Schedule;Customer A Invoice;Due Date 11/14/2013 Invoice;amount $2,500;Customer B Invoice;Due Date 9/09/2013 Invoice Amount $3,700;Customer C Invoice;Due Date 01/21/2014 Invoice Amount $4,200;The current balance in the Allowance for Doubtful;Account is $27,450 credit.;Required;1. Finish the aging schedule with the remaining;information.;2. Prepare the journal entry to update the;Allowance for Doubtful Accounts;3. Based on your aging schedule determine the;dollar amount that will be reported on the balance sheet for net receivables.;4. Your;boss told you that the estimated % that were used in the aging schedule for;Estimated Uncollectible Percentages should be reduced in half (each % reduced;by half). How will that change affect;the income statement and balance sheet?;(Total Points for the Problem 25);#4. Assume that on;Jan 18, 2014, your Customer Late Pay declared bankruptcy. The customer owes the company $5,800.;a. Prepare;the journal entry to write of the balance for Customer Late Pay;b. Explain;how the journal entry affect the income statement;(Total;Points for the Problem 10)

 

Paper#45177 | Written in 18-Jul-2015

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