11 when goods are sold fob shipping point title passes a at the shipping point b whe 4352268

11.When goods are sold FOB shipping point, title passes

a.at the shipping point

b.when the goods are unloaded at the buyer's place of business

c.when the goods are paid for by the buyer

d.midway between the seller's and buyer's places of business

12.When reporting revenues on the income statement, they should be reported net of

Expected                    Estimated

Sales Returns        Uncollectible Accounts

a.Yes                             Yes

b.Yes                             No

c.No                              Yes

d.No                              No

13.At the beginning of March, Freewill Magazine Company's unearned revenues included 15,000 annual subscriptions at $18 each. During March, the company received 4,000 new annual subscriptions at $18 each. The March issue was shipped to all subscribers on March 20. The amount of subscription revenue the company should recognize in March would be

a.$15,000

b.$28,500

c.$72,000

d.$270,000

e.$342,000

14.Sanders Corporation had gross sales today totaling $80,000. All sales were on credit terms of 2% discount if payment is received within 10 days of the sale date. Historically, about 10% of goods are returned by customers and about 80% of customers take advantage of the sales discount. If today is the last day of the accounting period, what amount of net revenue SHOULD be reported on the financial statements for today's sales?

a.$80,000

b.$78,560

c.$72,000

d.$70,848

e.$70,560

15.Which of the following should be subtracted out to arrive at the proper amount of net sales revenue to be reported on the income statement.

Estimated sales

discounts to be             Expected

taken by customers      Warranty Costs

a.Yes                        No

b.Yes                        Yes

c.No                         Yes

d.No                         No

16.Consumer Enterprises (CE) sold goods on 60-day credit to one of its usual customers for the amount of $18,000. CE offered a 2% discount if the customer would pay within 15 days of the sale date. When accounting for this sale, what is the minimum amount that should be recorded on the day of sale for Accounts Receivable?

a.$0

b.$17,640

c.$18,000

d.$18,360

17.The Fat Brush Paint Store sold merchandise on 30-day credit in the amount of $1,500. A discount of 3% was offered if the customer would pay within 10 days. What is the minimum amount that should be recorded on the day of sale for Accounts Receivable?

a.$0

b.$1,455

c.$1,500

d.$1,545

18.Sara, the bookkeeper at North Company is recording information into the accounting system to recognize the estimated amount of bad debt expense for the fiscal period. This entry into the accounting system will affect which of the account balances below?

Allowance for

Doubtful Accounts      Bad Debts Expense

a.Yes                        Yes

b.Yes                         No

c.No                         Yes

d.No                          No

19.Hildegoth Company reported accounts receivable of $40,000 at the beginning of 2007 It reported a balance of $28,000 at the end of 2007. From this information, it is possible to determine that during 2007,

a.credit sales were higher than cash collected from customers

b.credit sales were less than cash collected from customers

c.the firm was doing a poor job of collecting its receivables

d.credit sales decreased from the prior year

20.The Philandering Soy Company reported the following accounts receivable balances for 2008:

Beginning of the year$84,000

End of the year90,000

This information means that

a.credit sales exceeded cash collections from customers during the year

b.cash collections from customers exceeded credit sales during the year

c.the firm did an excellent job of collecting its receivables

d.credit sales increased during the current year over the prior year

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