48. The beginning balance in the Allowance for Uncollectible Accounts of Pankhur

Question

48. The beginning balance in the Allowance for Uncollectible Accounts of Pankhurst Corporation was $13,000 credit During the period, $8,500 of Accounts Receivable were written off. At the end of the period, Pankhurst estimates that $15,000 of its Accounts Receivable ill be uncollectible. What amount of Uncollectible Accounts Expense should the firm report? a. $6,500 b. $8,500 c. $10,500 d. $15,000 49. In times of rising prices, generally result(s) in the ending inventory amounts. a. LIFO and FIFO, same b. LIFO, higher c. FIFO, lower d. LIFO, lower 50. Which of the following statements is TRUE? a. International Financial Reporting Standards allow the use of LIFO. b. Companies wishing to lower their tax payments will choose LIFO over FIFO (in times of rising prices) c. Companies MUST choose a cost flow assumption that correlates to the physical flow of goods. FIFO is more difficult to apply and thus is more costly for companies to use in terms of record-keeping costs d. 51. On December 31, 2017, Aurora Enterprises falled to make the necessary adjusting entry for estimated Uncollectible Accounts. This error will cause an: a. b. c. d. Understatement of net income and an understatement of liabilities Overstatement of net income and an understatement of Sabilities Overstatement of net income and an overstatement of assets Understatement of assets and understatement of stockholders' equity the period July 8 through July 22. On August 9, Joanie sent the publisher an accounting of her hours. When should Joanie recognize revenue? 52. On June 5, Joanie Cunningham, an editor, received an advance from a publisher. She performed the work during a. June b. July c. August d. June and July 53. On August 1, ABC Co. shipped a machine to a customer and billed the customer for the remaining amount owed r had made a deposit for $8,000 on July 15. The customer paid the amount owed on When is revenue recorded and at what amount? a. July 15 $8,000 and August 1 $30,000 b. July 15 $8,000 and September 2 $30,000 c. August 1 $38,000 d. September 2 $38,000 September 2.

Explanation / Answer

48) c) 10500 (13000 - 8500 - 15000)

49) d) LIFO, lower

50) b) Companies wishes to lower their tax payments will choose LIFO over FIFO (in times of rising prices)

51) b) overstatement of net income and an understatement of liabilities

52) b) July

53) c) August 1 $38,000

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