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10 Cards in this Set
- Front
- Back
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6. Be able to count the number of days that a receivable is outstanding (Hint: Remember the knuckle trick for days in the month and the rule for counting days).
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memorize amount of days in each month.
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7. Know the journal entry for writing off an account as worthless
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allowance for uncollectibles debit
accounts recievable credit |
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8. Know which method of estimating uncollectibles is more accurate.
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aging method is more accurate.
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9. Know how to calculate estimated uncollectibles using the net sales method.
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net sales X percentage considered uncollectable equals estimate amount of uncollectables.
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10. Know what items increase and decrease the balance per the bank and books
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1 deposits in tranist
2 outstanding checks 3 note collected by the bank and interest. 4 NSF Checks 5 Service charges 6errors by the bank or books |
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11. Know the journal entry to estimate warranty expense.
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dec 31 product warranty expense debit
estimated product warranty liabilities credit 20 mowers X $100 each= 2000 2000 X 10 % =200 |
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12. Prepare the journal entry for sales tax payable. dewey Sells merchandise for $1000 to a customer on june 1. the sales tax is 7 %.
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1000 X .07= $70
June 1 cash debit 1070 sales credit 1000 sales tax payable credit 70 |
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13. Know what liabilities are considered definitely determinable
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Accounts payable and note payable
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14. Know what liabilities would need to be estimated
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income taxes, property taxes, product warranties and vacation pay
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15. Know the requirements for a liability to be considered contingent
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the liability must be probable
and the liability must be reasonably estimated. |
