Financial Accounting

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Financial Accounting Assignment 2

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The credit term 2/10 n/30 means: that after 10 days 2% interest is charged. that there is a 10% discount if payment is received within 30 days. that there is a 2% discount if payment is received within 10 days. there is a 10% discount if paid immediately and 2% if paid within 30 days.

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Family Food Stores purchased canned goods at an invoice price of \$3,000 and terms of 2/10, n/30. Half of the goods had been mislabeled and were returned immediately to the supplier. If Family Food pays the remaining amount of the invoice within the discount period, the amount paid should be:
\$1,440.
\$1,470.
\$2,940.
\$3,000.

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The balance shown on a bank statement is always equal to the
What is the amount of uncollectible accounts expense recognized in VIP's income statement for January?
\$6,400
\$8,000
\$8,700
\$7,200

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The Cash account in the ledger of Triangle Floors shows a balance of \$15,267 at September 30. The bank statement, however, shows a balance of \$19,700 at the same date. The only reconciling items consist of a bank service charge of \$7, a large number of outstanding checks totaling \$8,170, and a deposit in transit.

Refer to the above data. What is the amount of the deposit in transit?
\$4,440
\$7,104
\$3,730
\$4,333

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Herbert Corp uses its periodic inventory system and the following information is available: Sales...................................... | \$31,000 | Inventory-Beginning................. | 8,000 | Inventory-Ending..................... | 7,000 | Purchases................................ | 23,000 | | |
Calculate the cost of goods sold:
\$7,000.
\$24,000
\$23,000.
\$31,000

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On November 1, 2005, Phillip Corporation sold land priced at \$600,000 in exchange for a 7%, six-month note receivable.

Refer to the above data. The journal entry made by Phillip to record this transaction on November 1, 2005, includes: a debit to Notes Receivable of \$621,000. a debit to Interest Receivable of \$21,000. a credit to Interest Revenue of \$21,000. a debit to Notes Receivable of \$600,000.

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