45. On November 10 of the current year, Flores Mills sold carpet to a customer f

Question

45. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accountin g for cash discounts What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? A) ash 7,840 Accounts receivable 7,840 B) ash 7,840 Sales discounts 8,00 Accounts receivablhe C) 7,84 ash Sales Accouts receivable D) 8,000 Cash Sales discounts l6 8,00 Accounts receivable 160 Sales 46. How often must PP&E; and definite-lived intangible assets be tested for impairment? A. Annually B. At the end of each reporting period. C. Whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. D. Whenever a qualitative assessment indicates that it is more likely than not that the asset is impaired. None of the above. E.

Explanation / Answer

45.) The option is B ie., The correct entry for flores on november 17 is

Cash account $7,840

Sales discount $160

To Accounts receivable $8,000

46.) the option is D ie., whenever a Qualitative assessment indicates that it is more likely than not that the asset is impaired. The property, plant & equipment and definite intangible asset are tested for impairment based on the above answer.

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