ACCT 2113 1st Edition Exam 2 Study Guide Self-Study QuestionsChapter 51. On March 17, Marburger & McConnell sold $15,000 of bricks to Trippet & Tierra with terms of 2/10, net 30. What amount of net revenue (net sales) did Marburger & McConnell ultimately realize on the sale of these bricks? (Note: Trippet & Tierra paid for the bricks on March 25.) a. $15,000 c. $14,700 e. Zerob. $12,000 d. $11,7002. The entry to record the write-off of an account receivable will include:a. a credit to Bad Debt Expense.b. no entry because an allowance for uncollectible accounts was established in an earlier period.c. a credit to Accounts Receivable.d. a debit to Allowance for Uncollectible Accounts.e. both c & d3. The direct write-off method is generally not permitted for financial reporting purposes because:a. Compared to the allowance method, it would allow greater flexibility to managers in manipulating reported net income.b. This method is primarily used for tax purposes.c. It is too difficult to accurately estimate future bad debts.d. Expenses (bad debts) are not properly matched with the revenues (credit sales)that they help to generate. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.4. Jasmine’s Jewelers reported the following amounts at the end of 2012: total sales = $550,000; sales discounts = $12,000; sales returns = $36,000; sales allowances = $17,000. What was the company’s net sales for 2012? a. $489,000 c. $477,000b. $485,000 d. $499,0005. At the beginning of 2012, Coatney, Coxsey & Cutright (CCC) had accounts receivable of $64,000. At the end of 2012, the company had accounts receivable of $78,000. During 2012, CCC had total sales of $1,000,000, all of which were credit sales. What was this company’s average collection period for 2012?a. 12.82 c. 23.6 days e. 28.5 daysb. 14.09 d. 25.9 days6. Barfield’s Bagels had the following balances on December 31, 2012, before any adjustingentries: Accounts Receivable = $100,000; Allowance for Uncollectible Accounts = $4,100(credit). Barfield’s estimates uncollectible account expenses based on an aging of accounts receivable as shown below: Estimated PercentAge Group Accts. Rec’ble Uncollectible Not yet due $50,000 4% 0-30 days past due 20,000 8%31-60 days past due 18,000 20%More than 60 days past due 12,000 40%What amount of bad debt expense did Barfield’s record in its December 31, 2012, adjusting entry? a. $10,200 d. $6,100b. $12,000 e. some other amountc. $16,1007. “Provide services on account.” Indicate how this transaction would affect the following five financial statement items. Stockholders’Assets Liabilities Equity Revenues Net Incomea. Increase No effect Increase Increase No effectb. Increase No effect Increase Increase Increasec. Increase No effect Increase Increase Decreased. No effect No effect No effect No effect No effecte. Decrease No effect Decrease Increase No effect8. “Collect account receivable previously written off.” Indicate how this transaction would affect the following five items. Stockholders’Assets Liabilities Equity Revenues Net Incomea. No effect No effect No effect No effect No effectb. Increase Decrease Increase Decrease No effectc. Increase No effect Increase Increase Decreased. Increase No effect Increase Increase No effecte. Decrease No effect Decrease Increase No effect9. Suppose that the balance of a company’s allowance for uncollectible accounts was $6,200 (credit) at the end of 2009, prior to any adjusting entries. The company estimated that the total of uncollectible accounts in its accounts receivable was $44,300at the end of 2009. Total accounts receivable were $150,000 on December 31, 2009, and total credit sales for 2009 were $330,000. The company grants credit terms of 2/10,net 30 to its customers. What amount of bad debt expense appeared in the company’s 2009 income statement? a. $38,100 c. $33,000b. $105,700 d. $50,50010. Pea Ridge Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers. In March 2012, Pea Ridge provided $4,000 of plumbing services to El Dorado Hills & Thrills and $1,500 of services to Yorba Linda Estates. Each of these customers was granted credit terms of 2/10, net 30. If both customers paid for the plumbing services within the discount period, what was the net sales figure for these two transactions?a. $5,500 d. $4,606b. $4,312 e. $5,500c. $4,486Chapter 6Facts for Questions 11-15: During 2012, Panhandle Pancakes sold 750 pancakes. The selling price per pancake was $50. The company had the following beginning inventory and inventory purchase transactions during 2012. Units Unit CostInventory, January 1, 2012 100 $10Purchase: February 14, 2012 150 10 Purchase: April 19, 2012 200 15Purchase: August 8, 2012 20 20Purchase: December 17, 2012 350 3011. What was this company’s gross profit for 2012 assuming that it uses the average cost method?a. $7,500 d. $22,500b. $25,000 e. $15,000c. $20,00012. What was this company’s ending inventory for 2012 assuming that it uses the LIFO method? a. $5,000 d. $12,500b. $7,500 e. $17,500c. $2,50013. What was this company’s cost of goods sold for 2012 assuming it uses the FIFO cost method? a. $17,500 d. $12,500b. $25,000 e. $15,000c. $20,00014. Under which inventory cost flow assumption did Panhandle Pancakes report the lowest total gross profit on the sale of waffles during 2012? a. LIFOb. FIFOc. Average costd. The total gross profit would have been the same under all three methods.15. Assume that Panhandle Pancakes only purchased 250 pancakes on December 17th rather than 350 pancakes—the purchase price was still $30 per waffle. Which of the following statements would be true, assuming that the company applied the LIFO cost flow assumption?a. The company’s cost of goods available for sale (in terms of dollars) would be unaffected.b. The average cost per unit of the company’s ending inventory would be unaffected.c. The company’s cost of goods sold (in terms of