1. Which of the following items will NOT appear on the book side of the reconciliation? (Points : 1)

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1. Which of the following items will NOT appear on the book side of the reconciliation? (Points : 1)
The bank collected a note receivable of $1,000.
A nonsufficient funds check of $75 was returned to the bank.
A deposit was in transit.
The bank charged a service fee of $20.

2. The aging-of-accounts-receivable method computes uncollectible accounts expense as a percentage of net credit sales. (Points : 1)
True
False

3. In a bank reconciliation, a deposit in transit will be shown on the bank side of the reconciliation. (Points : 1)
True
False

4. The Allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet? (Points : 1)
$3,275
$3,075 (115000*.25)+200
$2,675
$2,875
None of these is correct

5. An accountant is under pressure to maximize the company’s net income at year-end. He is told to delay orders of important services until the following year. This action would be considered unethical because it is a misrepresentation of actual transactions. (Points : 1)
True
False

6. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Uncollectible accounts expense reported on the income statement? (Points : 1)
$15,900
$14,900
$14,100 (15000-900)
$15,000
None of these is correct

7. A company has Net sales of $850,000, Beginning net receivables of $230,000 and Ending net receivables of $190,000. What is the days' sales in accounts receivable? (Please round to nearest whole day.) (Points : 1)
82 days
99 days
93 days
90 days (230000+190000)/2)/850000)*360
None of these is correct


.

8. If the bank reconciliation includes a deposit in transit, a journal entry is required which includes a debit to cash. (Points : 1)
True
False

9. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet? (Points : 1)
$15,000
$14,900
$15,900
$14,100
None of these is correct

10. Which of the following is NOT one of the purposes of internal control? (Points : 1)
To encourage employees to follow company policy
To safeguard the company's assets
To ensure accurate, reliable accounting records
To guarantee that a business makes a profit