Category: Uncategorized

Pepperdine reported net sales of $8,600 million, net income of $126 million and average accounts receivable of $890 million. Its accounts receivable turnover is:

A receivable is an amount due from another party.

Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:

Internal control procedures for cash receipts do not require that:

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World’s journal entry to record the sales transaction is:

The formula for computing interest on a note is: Principal of the note × Annual interest rate × Time expressed in fraction of year.

The notes receivable account of a business should include both the notes that have not yet matured and the dishonored notes.

The maturity date of a note receivable:

Technologically advanced accounting systems rarely need monitoring for errors because computers always process transactions correctly.

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals: