FINANCIAL ACCOUNTING (5 multiple choice questions)
ChapterRevenue and Accounts Receivable :
1)On December 31, 20x5, you enter into a three yearcontract to build an office building for $19697757. At the end of20x6, you incurred $6834251 of costs and expect to incur anadditional $7626879 to complete the contract. How much revenue willyou realize on this contract in 20x6?
Select one:
a. $2474801
b. $5236627
c. $17650656
d. $9309052
2)On December 31, 20x5, you enter into a three yearcontract to build an office building for $22055068. At the end of20x6, you incurred $4231476 of costs and expect to incur anadditional $8772453 to complete the contract. How much profit willyou realize on this contract in 20x6?
Select one:
a. $2945239
b. $9051139
c. $6105900
d. $3017046
3)On January 1, 20x8, Myer Company’s allowance fordoubtful accounts had a credit balance of $4319. Sales revenue for20x8 was $985182 of which 80% was on credit. Historical dataindicates that 3 percent of credit sales prove uncollectible. Thecompany wrote off $7071 of accounts receivable during the year.What should the balance in the allowance account be after theadjusting entry for doubtful accounts is made?
Select one:
a. $16573 cr.
b. $12254 cr.
c. $20892 cr.
d. $12254 dr.
4) The following accounts were taken from Lane Co.’sunadjusted trial balance at December 31, 20x6:
Debit
Credit
Accounts Receivable
$339154
Allowance for doubtful accounts
2588
Net credit sales
$183769
Jessica estimates that 4.5% of the credit sales willbecome uncollectible. After adjustment at December 31, 20x6, whatis the balance in the allowance for doubtful accounts?
Select one:
a. $10858
b. $5682
c. $15262
d. $8270
5)The following list of partial account balances isprovided:
Sales returns and allowances
$461
Sales discounts
992
Sales revenue
61621
Allowance for doubtful accounts
934
What will be the net sales shown on the income statement?
Select one:
a. $59234
b. $60168
c. $61160
d. $60629
