Reference no: EM132476462

Questions -

Q1) If a company records $42.5m in Revenues for the year and the balances in Sales Discounts and Sales Returns are $2m and $1.5m respectively, what is the value of Net Revenue in millions?

Q2) REI purchases goods from Nike and on the invoices Nike specifies 4/10, n30. This means that REI will receive a [choice: 4%, 10%, 30%] discount if they pay within [choice: 4, 10, 30] days, otherwise the entire invoice amount is due in 4 days.

Q3) REI does not typically extend credit to customers and such uses the direct method to record bad debt expense. A semi pro football team which has gone bankrupt has an account receivable with REI of $25,000 which REI does not believe they will be able to collect. To write off the account receivable REI would Debit Accounts Receivable - Customer Name $25,000 and Credit Cash $25,000 .

Q4) To record bad debt expense under the Aging of Receivables Allowance method you would Debit [blank] and Credit [blank].

Q5) You estimate that the amount of your Accounts Receivable that will be uncollectible is $4,500. If the current balance in Allowance for Doubtful Accounts is a $250 credit what is the the dollar amount of the journal entry you would do to record bad debt expense?

Q6) On March 1st, your company loans a customer $50,000 with an annual interest rate of 9%. The loan matures in 3 months. What is the principal amount of the loan?

Q7) On March 1st, your company loans a customer $50,000 with an annual interest rate of 9%. The loan matures in 3 months. What is the monthly interest revenue?

Q8) On March 1st, your company loans a customer $50,000 with an annual interest rate of 9%. The loan matures in 3 months. How much total interest revenue does the company earn over the 3 months?

Q9) On March 1st, your company loans a customer $50,000 with an annual interest rate of 9%. The loan matures in 3 months. How much will your company receive in cash when the loan matures in 3 months?