15. Under the perpetual inventory system, what is a sales return? a. Reduction in the selling price of merchandise sold to customers, often involving damaged or defective merchandise that a customer is willing to purchase with a decrease in the selling price b. The return of goods by a customer c. An asset account used to estimate the cost of merchandise inventory a company will receive in returns d. A liability account used to estimate the amount of refunds that will be paid to customers in the future
16. Based on the following facts compute the balance in Net Accounts Receivable at December 31, 2023. Accounts Receivable at December 31, 2023 - $653,000 Allowance for Uncollectible, Dec 31, 2022- $32,500 Account receivable write-offs for 2023 - $82,500 Recoveries for 2023 - $12,500 Bad debt expense for 2023 - $65,000 a. $485,000 b. $625,500 c. $588,000 d. $637,000
17. Which 2 entries are required to record sales transactions in a perpetual inventory system? a. Sales revenue; cost of goods sold b. Sales revenue; accounts receivable c. Inventory sold; accounts receivable d. Accounts receivable; bad debt expense
20. Which 3 methods are used to estimate uncollectibles using the allowance method? a. Percent-of-sales, percent-of-receivables, aging-of-sales b. Percent-of-sales, percent-of-receivables, aging-of-receivables c. Percent-of-income, percent-of-receivables, aging-of-sales d. Percent-of-income, percent-of-receivables, aging-of-receivables
21. Compute Goodwill on this transaction: Sales price of net assets - $ 22,000,000 Book value of assets sold - $ 20,000,000 Liabilities sold (equal to market value) - $ 6,000,000 Market value of assets sold - $ 24,000,000 a. $ 2,000,000 b. $ 8,000,000 c. $ 4,000,000 d. $ 6,000,000