How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask F. Naz Your Own Question

F. Naz
F. Naz, Bachelor's Degree
Category: Business and Finance Homework
Satisfied Customers: 4103
Experience:  Have completed B.COM and CA Finalist
20040807
Type Your Business and Finance Homework Question Here...
F. Naz is online now
A new question is answered every 9 seconds

Which of the following statements correctly describes the effect

Resolved Question:

Which of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?
Current assets will remain the same.
Gross profit will decrease $200.
Accounts receivable will decrease $9,800.
Net sales will increase $9,800.

Which of the following correctly describes credit terms of 2/10, n/30?
A two percent discount for early payment is available if the invoice is paid before the tenth day of the month following the month the sale.
A two percent discount for early payment is available within ten days of the date of sale.
A ten percent discount for early payment is available if the invoice is paid within two days of the date of the invoice.
A two percent discount for early payment is available if the invoice is paid after the tenth day, but before the thirtieth day of the invoice date.


A company purchased goods on credit with credit terms of 3/15, n/45. Although the company does not have cash available to pay within the discount period, the manager of the company is considering borrowing money to take advantage of the discount. In order to make the appropriate decision, the manager computed the annual interest rate associated with the sales discount. Which of the following is the annual interest rate (rounded)? (Use 365 days a year.)
56%.
38%.
25%.
18%.

Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of the $21,500 just prior to writing off as worthless an account receivable for Hyland Company of $5,000. The net realizable value of accounts receivable as shown by the accounting records before and after the write-off was as follows:

Option A
Option B
Option C
Option D

The Rye Corporation has provided the following information:

• Total sales were $1,200,000.
• Beginning net accounts receivable was $45,000.
• Ending net accounts receivable was $65,000.
• Sales returns and allowances totaled $100,000.

What was Rye's receivable turnover ratio?
21.8
18.5
10.0
20.0
Which of the following is not a component of the gross profit calculation?
Cost of goods sold
Sales returns and allowances
Allowance for doubtful accounts
Credit card discounts
Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  F. Naz replied 1 year ago.

I will be offline for next 2 hours so you may send the questions by adding by name so they may be answered by me after two hours, thanks.

Which of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?
Gross profit will decrease $200.

Which of the following correctly describes credit terms of 2/10, n/30?
A two percent discount for early payment is available within ten days of the date of sale.


A company purchased goods on credit with credit terms of 3/15, n/45. Although the company does not have cash available to pay within the discount period, the manager of the company is considering borrowing money to take advantage of the discount. In order to make the appropriate decision, the manager computed the annual interest rate associated with the sales discount. Which of the following is the annual interest rate (rounded)? (Use 365 days a year.)
38%.

Oakwood Company had accounts receivable of $750,000 and an allowance for doubtful accounts of the $21,500 just prior to writing off as worthless an account receivable for Hyland Company of $5,000. The net realizable value of accounts receivable as shown by the accounting records before and after the write-off was as follows:

Option A
Option B
Option C
Option D
750000-21500 = 728500 as the options are not given, therefore the answer may not be selected


The Rye Corporation has provided the following information:

• Total sales were $1,200,000.
• Beginning net accounts receivable was $45,000.
• Ending net accounts receivable was $65,000.
• Sales returns and allowances totaled $100,000.

What was Rye's receivable turnover ratio?

20.0
Which of the following is not a component of the gross profit calculation?
Allowance for doubtful accounts

Customer: replied 1 year ago.







A company reported the following information for its most recent year of operation: purchases, $105,000; beginning inventory, $22,500; and cost of goods sold, $115,000. How much was the company's ending inventory?



 


















$12,500
$22,500
$17,500

$32,500









Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:



 



































DateTransactionNumber of UnitsCost per Unit
1/1 Beginning Inventory130$830
5/5 Purchase230$930
8/10 Purchase330$1,030
10/15 Purchase215$1,080








During the year, 825 laptop computers were sold.
What was ending inventory using the FIFO cost flow assumption?

 


















$86,400
$86,400
$85,900

$66,400









Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:



 



































DateTransactionNumber of UnitsCost per Unit
1/1 Beginning Inventory170$870
5/5 Purchase270$970
8/10 Purchase370$1,070
10/15 Purchase235$1,120

 








During the year, 925 laptop computers were sold.
What was cost of goods sold using the FIFO cost flow assumption?

 


















$934,500
$964,500
$946,156

$942,500













A corporation has provided the following information about one of their products:
































DateTransactionNumber of UnitsCost per Unit
1/1 Beginning Inventory210$142
6/5 Purchase410$162
11/15 Purchase110$202










During the year, 420 units were sold. What is ending inventory using the average cost method? (Do not round your intermediate calculations, round the final answer to nearest dollar amount.)





















$50,305
$66,420
$52,305

$64,420









Moore Company purchased an item for inventory that cost $29 per unit and was priced to sell at $48. It was determined that the replacement cost is $27 per unit. Using the lower-of-cost-or- market rule, what amount should be reported on the balance sheet for inventory?



 










Which of the following is correct when beginning inventory is understated by $1,600 and ending inventory is understated by $850?




















Net income is understated by $750.
Net income is understated by $2,450.
Net income is overstated by $750.
Net income is overstated by $2,450.


















$27
$29
$21

$48









Tinker's 2011 cost of goods sold was $920,000 and 2010 cost of goods sold was $940,000. The inventory at the end of 2011 was $205,000 and $225,000 at the end of 2010. What was Tinker's inventory turnover during 2011?



 


















4.28
4.49
4.37

4.18









Wilmington Company reported pretax income of $28,200 during 2010 and $33,300 during 2011. Later it was discovered that the ending inventory for 2010 was understated by $3,600 (and not corrected in 2011). What is the correct pretax income for each year?



 






























20102011
A.$24,600$36,900
B.$31,800$36,900
C.$31,800$29,700
D.$24,600$29,700

 


















Option A
Option B
Option C
Option D














Which of the following costs is not included as inventory on the balance sheet?
















Raw materials currently being used in the manufacturing process.
Work in process.
Finished goods.
Storage costs for finished goods.









Which of the following costs will not affect cost of goods sold?


















Inventory inspection costs.
Inventory preparation costs.
Inventory related selling costs.

Freight charges incurred to acquire inventory.
Under the FIFO cost flow assumption during a period of inflation, which of the following is false?


















Income tax expense will be higher than under LIFO.
Gross margin will be higher than under LIFO.
Ending inventory will be lower than under LIFO.
Cost of goods sold will be lower than under LIFO.
Which of the following statements is correct regarding either the perpetual or periodic inventory systems?
















In a perpetual inventory system, the inventory account is not changed for each purchase during the accounting period.
In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the accounting period.
In a periodic inventory system, cost of goods sold is developed from a comparison of beginning inventory and ending inventory only.
In a periodic inventory system, the inventory account is increased for each purchase during the accounting period.





 





Expert:  F. Naz replied 1 year ago.

A company reported the following information for its most recent year of operation: purchases, $105,000; beginning inventory, $22,500; and cost of goods sold, $115,000. How much was the company's ending inventory?

$12,500



Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

Date

Transaction

Number of Units

Cost per Unit

1/1

Beginning Inventory

130

$830

5/5

Purchase

230

$930

8/10

Purchase

330

$1,030

10/15

Purchase

215

$1,080


uring the year, 825 laptop computers were sold.
What was ending inventory using the FIFO cost flow assumption?


$86,400

Lauer Corporation uses the periodic inventory system and has provided the following information about one of their laptop computers:

e

Transaction

Number of Units

Cost per Unit

1/1

Beginning Inventory

170

$870

5/5

Purchase

270

$970

8/10

Purchase

370

$1,070

10/15

Purchase

235

$1,120



During the year, 925 laptop computers were sold.
What was cost of goods sold using the FIFO cost flow assumption?

$934,500

corporation has provided the following information about one of their products:



Date

Transaction

Number of Units

Cost per Unit

1/1

Beginning Inventory

210

$142

6/5

Purchase

410

$162

11/15

Purchase

110

$202









During the year, 420 units were sold. What is ending inventory using the average cost method? (Do not round your intermediate calculations, round the final answer to nearest dollar amount.)

$50,305

Moore Company purchased an item for inventory that cost $29 per unit and was priced to sell at $48. It was determined that the replacement cost is $27 per unit. Using the lower-of-cost-or- market rule, what amount should be reported on the balance sheet for inventory?

$27 per unit

Which of the following is correct when beginning inventory is understated by $1,600 and ending inventory is understated by $850?

Net income is overstated by $750.




Tinker's 2011 cost of goods sold was $920,000 and 2010 cost of goods sold was $940,000. The inventory at the end of 2011 was $205,000 and $225,000 at the end of 2010. What was Tinker's inventory turnover during 2011?

4.28

Wilmington Company reported pretax income of $28,200 during 2010 and $33,300 during 2011. Later it was discovered that the ending inventory for 2010 was understated by $3,600 (and not corrected in 2011). What is the correct pretax income for each year?

2010

2011

A.

$24,600

$36,900

B.

$31,800

$36,900

C.

$31,800

$29,700

D.

$24,600

$29,700

Option C

Which of the following costs is not included as inventory on the balance sheet?

Storage costs for finished goods.

Which of the following costs will not affect cost of goods sold?

Inventory related selling costs.


Under the FIFO cost flow assumption during a period of inflation, which of the following is false?
















Ending inventory will be lower than under LIFO.

Which of the following statements is correct regarding either the perpetual or periodic inventory systems?




In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the accounting period.

F. Naz, Bachelor's Degree
Satisfied Customers: 4103
Experience: Have completed B.COM and CA Finalist
F. Naz and other Business and Finance Homework Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • linda_us

    Master's Degree

    Satisfied Customers:

    805
    A tutor for Business, Finance, Accounts and other related topics.
< Last | Next >
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg linda_us's Avatar

    linda_us

    Master's Degree

    Satisfied Customers:

    805
    A tutor for Business, Finance, Accounts and other related topics.
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Bachelor's Degree

    Satisfied Customers:

    355
    Have completed B.COM and CA Finalist
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    Accountant

    Satisfied Customers:

    257
    BA degree and Certified Public Accountant
  • http://ww2.justanswer.com/uploads/ED/educatortech/2012-6-7_1256_williams4.64x64.jpg Mr. Gregory White's Avatar

    Mr. Gregory White

    Master's Degree

    Satisfied Customers:

    197
    M.A., M.S. Education / Educational Administration
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Lawyer, Accountant & Researcher

    Satisfied Customers:

    161
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/BF/bfc77usa/2011-5-11_42346_face.64x64.jpg Alex's Avatar

    Alex

    Bachelor's Degree

    Satisfied Customers:

    144
    BS in Business Administration with honors. Able to assist in many business related courses.
  • http://ww2.justanswer.com/uploads/BR/brittanyshock1/2012-6-16_174743_JAphoto.64x64.jpg Brittany's Avatar

    Brittany

    Professional

    Satisfied Customers:

    28
    AA/Accounting BS/Business