10级中财期中考试卷和答案.docVIP

10级国际会计专业《中级财务会计》期中考试 Question 1 A trial balance before adjustment included the following: Debit Credit Accounts receivable $80,000 Allowance for doubtful accounts 730 Sales $340,000 Sales returns and allowances 8,000 Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales. Solution (1) Bad Debt Expense 3,270 Allowance for Doubtful Accounts 3,270 (2) Bad Debt Expense 3,320 Allowance for Doubtful Accounts 3,320 Question 2 Prepare journal entries for Mars Co. for: (a) Accounts receivable in the amount of $500,000 were assigned to Utley Finance Co. by Mars as security for a loan of $425,000. Utley charged a 3% commission on the accounts; the interest rate on the note is 12%. (b) During the first month, Mars collected $200,000 on assigned accounts after deducting $450 of discounts. Mars wrote off a $530 assigned account. (c) Mars paid to Utley the amount collected plus one months interest on the note. Solution (a) Cash 410,000 Finance Charge 15,000 Notes Payable 425,000 (b) Cash 200,000 Sales Discounts 450 Allowance for Doubtful Accounts 530 Accounts Receivable 200,980 (c) Notes Payable 200,000 Interest Expense 4,250 Cash 204,250 Question 3 On May 1, Dexter, Inc. factored $800,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. Instructions (a) Prepare the journal entry required on Dexters books on May 1. (b) Prepare the journal entry required on Quick Finance’s books on May 1. (c) Assume Dexter factors the $800,000 of accounts recei