3. Garson Co. recorded goods in transit purchased FOB shipping
point at year-end as purchases. The goods were excluded from the
ending inventory. What effect does the omission have on Garson's
assets and retained earnings at year end?
4. In accordance with ASC Topic 255, the Consumer Price Index for
All Urban Consumers is used to compute information on a
5. If current assets exceed current liabilities, payments to creditors
made on the last day of the month will
6. At the end of its first year of operations, December 31, year 1,
Wonder Company had a net realizable value of accounts receivable of
$500,000. During year 1 Wonder recorded charges to bad debt
expense of $80,000 and wrote off as uncollectible accounts receivable
of $20,000. What should Wonder report on its balance sheet at
December 31, year 1, as accounts receivable before the allowance for
doubtful accounts?
7. A company is in its first year of operations and has never written
off any accounts receivable as uncollectible. When the allowance
method of recognizing bad debt expense is used, the entry to
recognize that expense
8. When the allowance method of recognizing bad debt expense is
used, the allowance for doubtful accounts would decrease when a(n)
9. In accordance with ASC Topic 860, Transfers and Servicing, all of
the following would be disclosed except for
10. The premium on a 3-year insurance policy expiring on December
31, year 3, was paid in total on January 2, year 1. If the company has
a 6-month operating cycle, then on December 31, year 1, the prepaid
insurance reported as a current asset would be for
11. Foster Co. adjusted its allowance for uncollectible accounts at
year-end. The general ledger balances for the accounts receivable and