Accounting: Final Exam Review With Questions And Answers 2024/2025 Quiz

aging of receivables method {Ans: businesses group individual accounts based on how long the receivable has been outstanding, then give an estimated percentage of how much in each group is going to be uncollectible, next they add each group's percentage to calculate total estimated balance of allowance for doubtful accounts. (pays attention to balance in ADA- remember ADA is a contra-asset)}The Merchandise Inventory account has a balance of $37,800 however a physical count shows that only $35,900 of merchandise remains. Record the adjustment for inventory shrinkage based on physical count {Ans: Debit to Cost of Goods Sold for $1,900 Credit to Merchandise Inventory for $1,900}gross profit {Ans: net sales - cost of goods sold}On Dec. 1st the equipment has a balance of $26,000 and is expected to have a 5 year useful life and be worth $8,000 at the end of the five years. Record the adjusting entry for the monthly depreciation as of Dec. 31st {Ans: Debit to Depreciation Expense- Equipment for $300 Credit to Accumulated Depreciation- Equipment for $300}Net Sales: $504,459 Cost of Sales: $283,494 Advertising Expense: $46,636 Other Expenses, net: $157,811 Prepare the closing entries for revenues, and expenses {Ans: -Revenues: Debit