ACCTMIS 2000-Ten To One Gaming Corporation purchases poker chips
Question 1Ten To One Gaming Corporation purchases poker chips from wholesalers and sells them to casinos inLas Vegas and Atlantic City. The company gets all of its merchandise from a supplier in Minnesotaand always buys on credit with credit terms of 2/10, n/30. Which statement below best explains thecredit terms of 2/10, n/30?The buyer will receive a 2% discount if they pay within ten days of the saleThe buyer will receive a 10% discount if they pay within two days of the saleThe buyer will receive a 10% discount if they pay within thirty days of the saleThe buyer will receive a 2% discount if they pay within thirty days of the saleFlag this QuestionQuestion 2When a specific customer’s account receivable is written-off by a company, the effect of the write-offon net incomeand the allowance for bad debts is:decrease net income and decrease the allowance for bad debtsno effect on net income and decrease the allowance for bad debtsno effect on net income and no effect on the allowance for bad debtsno effect on net income and increase the allowance for bad debtsdecrease net income and increase the allowance for bad debtsFlag this QuestionQuestion 3During a period of increasing inventory costs (i.e., assume a period of inflation), which inventory costingmethod will show cost of goods sold on the income statement at the most current acquisition costs?LIFOFIFOweighted averageall methods will show the same amount of cost of goods soldeither (a) or (b) depending on the tax rateFlag this QuestionQuestion 4At January 1, 2014, XYZ Company reported an allowance for bad debts with a $17,000 credit balance.During 2014, XYZ Company wrote-off as uncollectible accounts receivable totaling $25,000. Based onan aging of its accounts receivable at December 31, XYZ Company determined that its bad debt expensefor 2014 was equal to $48,000. Assuming XYZ Company had total accounts receivable of $280,000 atDecember 31, 2014, then its net realizable value at December 31, 2014 must be equal to:$207,000$232,000$190,000$224,000$240,000Flag this QuestionQuestion 5The following selected account balances were taken from Buckeye Company’s general ledgerat January 1, 2019 and December 31, 2019:
January 1, 2019 December 31, 2019Accounts receivable 101,000 142,000
Inventory 12,000 23,000
The following information was taken from Buckeye Company’s 2019 income statement:
Sales revenue $354,780
Cost of goods sold 127,750
Salaries expense 85,000
Income tax expense 56,000
Net income $ 86,030
Calculate the average number of days that elapse between Buckeye Company making sales tocustomers and collecting cash from those customers. Enter your answer as a number (i.e., 94).Do not use decimals or a $ in your answer. Additionally, do not type the word days afteryour answer.Flag this QuestionQuestion 6The cash account in the general ledger of XYZ Company shows a balance of $18,700 atJune 30. The June 30 bank statement; however, shows a balance of $19,800. The onlyreconciling items consist of:
• NSF check from customer• Outstanding checks totaling $5,630• Error in recording check #970 written by XYZ Company to pay for utilities; the check was written for $468 but was recorded in XYZ Company’s accounting records as having been written for $588• A bank service charge totaling $50• A deposit in transit in the amount of $2,380
Calculate the amount of the NSF check. Do not enter your answer with a minus signin front of the number or use decimals in your answer.
Flag this QuestionQuestion 7M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customersfor $12.75 per unit. At June 1, 2018, M.T. Glass had 8,000 units of inventory costing$5.50 per unit on hand. During June, M.T. Glass recorded the following purchases ofinventory:June 9 13,000 units purchased at $3.05 per unit
June 17 9,000 units purchased at $4.25 per unit
June 26 10,000 units purchased at $7.05 per unitDuring June, M.T. Glass sold 26,000 units, reported operating expenses of $140,000 andhad an income tax rate of 35%.
Calculate the amount of gross profit reported on M.T. Glass, Inc.’s income statementfor June using the LIFO method. Do not use decimals in your answer.Flag this QuestionQuestion 8M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customersfor $12.75 per unit. At June 1, 2018, M.T. Glass had 8,000 units of inventory costing$5.50 per unit on hand. During June, M.T. Glass recorded the following purchases ofinventory:June 9 13,000 units purchased at $3.05 per unit
June 17 9,000 units purchased at $4.25 per unit
June 26 10,000 units purchased at $7.05 per unitDuring June, M.T. Glass sold 26,000 units, reported operating expenses of $140,000 andhad an income tax rate of 35%.
Calculate the dollar amount of ending inventoryshown on M.T. Glass, Inc.’s June 30balance sheet using the weighted average method. Do not use decimals in your answer.Flag this QuestionQuestion 9M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customersfor $12.75 per unit. At June 1, 2018, M.T. Glass had 8,000 units of inventory costing$5.50 per unit on hand. During June, M.T. Glass recorded the following purchases ofinventory:June 9 13,000 units purchased at $3.05 per unit
June 17 9,000 units purchased at $4.25 per unit
June 26 10,000 units purchased at $7.05 per unitDuring June, M.T. Glass sold 26,000 units, reported operating expenses of $140,000 andhad an income tax rate of 35%.
Calculate the amount of net income reported on M.T. Glass, Inc.’s income statement forJune using the FIFO method. Do not use decimals in your answer.Flag this QuestionQuestion 10At January 1, 2019, Betty DeRose, Inc. reported an allowance for bad debts with a $9,000credit balance. During 2019, Betty DeRose wrote-off as uncollectible accounts receivabletotaling $16,000. At December 31, 2019, Betty DeRose prepared the following aging schedule: Accounts Receivable % Uncollectible
not past due $150,000 3%
1-45 days past due 65,000 8%
46-90 days past due 45,000 12%
91-135 days past due 20,000 25%
over 135 days past due 6,000 80%
Calculate the amount of bad debt expense recorded by Betty DeRose, Inc. for 2019.
