151. Refer to the above data. Windsor uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400. What is the amount of uncollectible accounts expense recognized in Windsor's income statement for January?
A. $7,400.
B. $6,600
C. $8,200.
D. Some other amount.
152. Refer to the above data. Windsor uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400. The net realizable value of Windsor's accounts receivable in the January 31 balance sheet is:
A. $321,400.
B. $340,000.
C. $322,600.
D. $347,400.
153. Refer to the above data. Windsor uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 2% of credit sales. What is the amount of uncollectible accounts expense recognized in Windsor's income statement for January?
A. $8,000.
B. $10,000.
C. $8,700.
D. $7,200.
154. Refer to the above data Windsor uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 2% of credit sales. The net realizable value of Windsor's accounts receivable in the January 31 balance sheet is:
A. $332,800.
B. $332,000.
C. $331,200.
D. Some other amount.
155. At the beginning of the year, Robert Company's Allowance for Doubtful Accounts had a $3,200 credit balance. During January, a provision of 2% of sales was made for uncollectible accounts expense. During January, sales totaled $350,000, and $2,900 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made during the month. Robert's financial statements for January show:
A. Allowance for Doubtful Accounts with a credit balance of $10,200.
B. Allowance for Doubtful Accounts with a credit balance of $7,300.
C. Uncollectible Accounts Expense of $9,900.
D. Uncollectible Accounts Expense of $4,100.
156. Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements is not true?
A. Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.
B. Deegan waits approximately 46 days to make collections of its credit sales. (Use 365 days in a year.)
C. Deegan writes off accounts receivable as uncollectible if they are over 45 days old.
D. Deegan's net credit sales are about eight times the amount of its average accounts receivable.
157. Stanley, Inc.'s 2009 income statement reported net sales of $6,000,000, uncollectible accounts expense of $160,000, and net income of $700,000. Stanley's average accounts receivable during 2009 amounted to $1,200,000. Using 360 days to a year, Stanley's
A. Accounts receivable turnover rate is approximately 4.4 times.
B. Accounts receivable turnover rate is approximately 2.5 times.
C. Average number of days to collect an account receivable is 72 days.
D. Accounts receivable turnover rate is approximately 2 times.
158. Assuming a 365 day year, Gore Industries calculated an average of 53 days to collect its accounts receivable in 2007. During 2007, Gore's accounts receivable turnover rate:
A. Was approximately 6.89.
B. Was equal to 53 times its average accounts receivable.
C. Was approximately 0.15.
D. Can't be determined from this information alone.
159. Varsity Corporation sold available-for-sale marketable securities costing $800,000 for $860,000 cash. This transaction is reported in Varsity's income statement and statement of cash flows, respectively, as:
A. A $60,000 gain and a $60,000 cash receipt.
B. A $860,000 gain and a $60,000 cash receipt.
C. A $60,000 gain and a $860,000 cash receipt.
D. A $860,000 gain and a $860,000 cash receipt.
160. Fisher Corporation invested $320,000 cash in available-for-sale marketable securities in early December. On December 31, the quoted market price for these securities is $337,000. Which of the following statements is correct?
A. Fisher's December income statement includes a $17,000 gain on investments.
B. If Fisher sells these investments on January 2 for $300,000, it will report a loss of $37,000.
C. Fisher's December 31 balance sheet reports marketable securities at $320,000 and an unrealized holding gain on investments of $17,000.
D. Fisher's December 31 balance sheet reports marketable securities at $337,000 and an unrealized holding gain on investments of $17,000.
On October 12, 2010, Neptune Corporation invested $700,000 in short-term available-for-sale marketable securities. The market value of this investment was $730,000 at December 31, 2010, but had slipped to $725,000 by December 31, 2011.