Question

17) Which financial statement is prepared last?

A) statement of retained earnings

B) income statement

C) balance sheet

D) The financial statements can be prepared in any order 

 

18) Net sales revenue is calculated by 

A) subtracting sales discounts and estimated sales returns and allowances from sales revenue

B) subtracting cost of goods sold from sales revenue

C subtracting sales discounts and selling expenses from sales revenue

D) adding sales discounts and sales returns and allowances to sales revenue

 

19) Which of the following is the correct formula to calculate weighted- average unit cost for merchandise inventory?

A) Weighted- average unit cost = Cost of goods available for sale x Number of units available

B) Weighted-average unit cost = Cost of goods available for sale/Number of units available 

C) Weighted- average unit cost =  Cost of goods available for sale+ Number of units available

D) Weighted-average unit cost = Cost of goods available for sale- Number of units available

 

20) Which of the following items must be examined by the controller or treasurer before signing a check?

A) the journal entry

C) the confirmation report

B) the ledger

D) the purchase order 

21) At the beginning of 2019, Patriots, Inc. has the following account balances:

Accounts Receivable $45,000 (Debit)

Allowance for Bad Debts $8,000 (Credit)

Bad Debts Expense $0

During the year, credit sales amounted to $810,000. Cash collected on credit sales amounted to $770,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 3.5%. The amount of bad debt expense for 2019 is.

A) $18,000

B) $18,350

C) $28,350

D) $56,875