ISU ACCT 284 QUIZ 4 FALL10

OCT27

1.	Quiz 4 Question 1
	Dillard Corporation had credit sales during the year totaling $4,750,000 and an ending accounts receivable balance of $650,000 and allowance for doubtful accounts balance of $20,000. Assuming Dillard has a historical bad debt loss rate of 4% and uses the income statement method, what entry will Jordan need to make at the end of the year to record bad debt expense?   Student Response Value Correct Answer 1. Bad Debt Expense +210,000; Allowance for Doubtful Accounts -$210,000      2. Bad Debt Expense +26,000; Allowance for Doubtful Accounts +$26,000 0%     3. Bad Debt Expense +190,000; Allowance for Doubtful Accounts +$190,000      4. Bad Debt Expense +170,000; Allowance for Doubtful Accounts +$170,000
2.	Quiz 4 Question 2
	Which of the following statements is correct regarding the effect of writing off an uncollectible account?   Student Response Value Correct Answer Feedback  1. Net income is unchanged 100%      2. Total assets decrease     3. Net income is reduced     4. Stockholders' equity increases
3.	Quiz 4 Question 3
	Toys “R” Us had cost of goods sold in 2004 of $7,506 million and $7,646 million in 2003. Their merchandise inventory in 2004 was $1,884 million and $2,094 million in 2003. What was their inventory turnover in 2004? (Inventory Turnover Ratio = COGS / Average Inventory)   Student Response Value Correct Answer Feedback  1. 3.77      2. 3.89     3. 3.97     4. 4.15     Score: 3/3
4.	Quiz 4 Question 4
	Assume that a company uses the PERIODIC inventory method. May 1 On hand, 200 units @ $5.00 each May 5 Purchased 400 units @$5.10 each May 6 Sold 500 units @ $10.00 each May 14 Purchased 300 units @$5.20 each May 17 Sold 200 units @ $10.00 each If the company uses the FIFO inventory method, the amount assigned to the May 31 inventory would be:   Student Response Value Correct Answer Feedback 1. $1,010     2. $1,020     3. $1,030      4. $1,040
5.	Quiz 4 Question 5
	Assume that a company uses the PERIODIC inventory method. May 1 On hand, 200 units @ $5.00 each May 5 Purchased 400 units @$5.10 each May 6 Sold 500 units @ $10.00 each May 14 Purchased 300 units @$5.20 each May 17 Sold 200 units @ $10.00 each If the company uses the LIFO inventory method, the gross profit for May would be:   Student Response Value Correct Answer Feedback 1. $7,000     2. $3,520      3. $3,430     4. $3,400