ACCT 304 Week 5 Quiz
Grade Details – All Questions
1. Question : (TCO 7) Compensating balances represent
funds in a bank account that cannot be spent.
balances in a payroll checking account.
accounts that are subject to bank service charges.
accounts on which banks pay interest, such as NOW accounts.
2. Question : (TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?
Option a
Option b
Option c
Option d
3. Question : (TCO 7) Which of the following does not change the balance in accounts receivable?
Returns on credit sales
Collections from customers
Bad debts expense adjusting entry
Write-offs
4. Question : (TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is
$2,270.
$2,550.
$2,470.
$2,700.
5. Question : (TCO 7) Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2010. During 2011, Calistoga’s credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. Calistoga’s adjusted allowance for uncollectible accounts at December 31, 2011 is
$1,575.
$1,505.
$1,650.
$1,720.
