Homework SourseWhich one of the following accounts would generally not be f
Which one of the following accounts would generally not be found in an adjusting AJE?
Unearned revenue
interest receivable
Retained earnings
Prepaid insurance
A floral shop, which uses a perpetual inventory system, sells a vase for 28 which it carried in its inventory for 20. Sales commission was $1. Which is correct
Gross margin % is 40%
The sales commission is recorded in an expense account
Net sales would be $8
Cost of goods is 21
Which one of the following is true with respect to allowance for uncollectible accounts?
Normally has a 0 balance
Closed out at end of year
Has a normal debit balance
Reduces A/R to its future economic benefit
Which one of the following accounts would generally not be found in an adjusting AJE?
Unearned revenue
interest receivable
Retained earnings
Prepaid insurance
A floral shop, which uses a perpetual inventory system, sells a vase for 28 which it carried in its inventory for 20. Sales commission was $1. Which is correct
Gross margin % is 40%
The sales commission is recorded in an expense account
Net sales would be $8
Cost of goods is 21
Which one of the following is true with respect to allowance for uncollectible accounts?
Normally has a 0 balance
Closed out at end of year
Has a normal debit balance
Reduces A/R to its future economic benefit
Unearned revenue
interest receivable
Retained earnings
Prepaid insurance
A floral shop, which uses a perpetual inventory system, sells a vase for 28 which it carried in its inventory for 20. Sales commission was $1. Which is correct
Gross margin % is 40%
The sales commission is recorded in an expense account
Net sales would be $8
Cost of goods is 21
Which one of the following is true with respect to allowance for uncollectible accounts?
Normally has a 0 balance
Closed out at end of year
Has a normal debit balance
Reduces A/R to its future economic benefit
Solution
1) Retained earning is not found in adjusting journal entries
So answer is c) Retained earnings
2) Sale value = 28
Cost = 20
Gross margin = 8
So answer is b) The sale commission is recorded is an expense account
3) True in respect to allowance for doubtful accounts
So answer is d) Reduce A/R to its future economic benefit
