Question
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. Question 4 1 / 1 pts At the beginning of the year, Tropicana...
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Question 2
1 / 1 pts
Target's inventory account at year-end has an ending balance of
$3,500,000. The physical count reveals that only $3,250,000 of
inventory exists. What adjusting entry should Target record to
reconcile ending inventory to the physical count?
O
DR: COGS $250,000; CR: Inventory $250,000
O
DR: Bad Debt Expense $250,000; CR: Allowance for Bad Debts
$250,000
No adjusting entry needed
DR: Inventory $250,000; CR: Loss $250,000
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Question 3 1 / 1 PtS Why is the Direct Write—off Method not GAAP? It violates the Matching Principle
It violates both the Matching and Conservatism Principals
It is permitted to be used for Tax Basis accounting It violates the Conservatism Principle
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Question 4
1 / 1 pts
At the beginning of the year, Tropicana Co.'s Allowance for Bad
Debts had a beginning balance of $1,000. On 9/1 Lucy
Richardson called to say she would not be able to pay her
invoice of $500. At 12/31, Tropicana concluded that 10% of its'
Accounts Receivable (ending balance, $35,000) would be
uncollectible. What journal entry should Tropicana record on
9/1?
DR: Bad Debt Expense $500; CR: Allowance for Bad Debts $500
O DR: Bad Debt Expense $500; CR: A/R - Lucy Richardson $500
O
DR: Allowance for Bad Debts $500; CR: A/R - Lucy Richardson
$500
O DR: Allowance for Bad Debts $500; CR: Cash $500
Answer & Explanation
Solved by verified expertAnswered by mpdonque on coursehero.com
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