A company had sales of $685,000 and cost of goods sold of $294,000. Its gross margin equals: $685,000 $391,000 $294,000 $(391,000) $979,000 Answer $391,000

A company had sales of $685,000 and cost of goods sold of $294,000. Its gross margin equals:
$685,000
      $391,000
      $294,000
      $(391,000)
      $979,000
Answer
$391,000

A company had Direct materials inventory on January 1, 2007 of $800, purchases of $600 during January, and had inventory on January 31 of $700. The amount of direct materials used was:

		$800
		$500
		$700
		$600

Answer
$800

Unit sales of Product A are currently 10,000, while unit sales of Product B are double those of Product A. Assuming sales of Product A increase by 10% and those of Product B increase by 4,000 units, the company's sales forecast will be

		10,000 and 20,000 units, respectively.
		11,000 and 22,000 units, respectively.
		11,000 and 24,000 units, respectively.
		10,100 and 24,200 units, respectively

Answer
11,000 and 24,000 units, respectively

What is 4050 + 60403 x 3055 - 20350?

What is 4050 + 60403 x 3055 - 20350?

4050 + 60403 x 3055 - 20350
solution
=4050 + 60403 x 3055 - 20350
= 64,453 x -17,295
=-1,114,714,635

The balance in accounts receivable at the beginning of 2011 was $640. During 2011, $3,100 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $200 in accounts receivable were written off during the year, the amount of cash collected from customers during 2011 was:

	$3,490.
	$3,100.
	$3,290.
	$3,740.

Correct answer is $3,290

Explanation of the Answer is
$640 + 3,100 − 200 − 250 = $3,290.

Wish you good luck!

The following information relates to Halloran Co.'s accounts receivable for 2011:

Accounts receivable balance, 1/1/11	$   859,000
Credit sales for 2011	3,330,000
Accounts receivable written off during 2011	69,000
Collections from customers during 2011	3,060,000
Allowance for uncollectible accounts balance, 12/31/11	219,000

What amount should Halloran report for accounts receivable, before allowances, at December 31, 2011?

	$1,060,000.
	$1,129,000.
	$841,000.
	None of the above.

Correct answer is $1,060,000.

Explanation of the Answer is
$859,000 + 3,330,000 − 69,000 − 3,060,000 = $1,060,000

Wish you good luck!

False Value Hardware began 2011 with a credit balance of $31,800 in the allowance for sales returns account. Sales and cash collections from customers during the year were $700,000 and $660,000,

False Value Hardware began 2011 with a credit balance of $31,800 in the allowance for sales returns account. Sales and cash collections from customers during the year were $700,000 and $660,000, respectively. False Value estimates that 5% of all sales will be returned. During 2011, customers returned merchandise for credit of $24,000 to their accounts.

What is the balance in the allowance for sales returns account at the end of 2011?

	$42,800.
	$59,000.
	$7,800.
	$35,000. Correct answer is $42,800. Explanation of the Answer is $31,800 + 35,000 ($700,000 × 5%) – 24,000 = $42,800 Wish you good luck!