1. (TCO 7) Cash equivalents do not include (Points : 5)

money market funds. high grade marketable equity securities. U.S. Treasury bills. commercial paper.

Question 2. 2. (TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date? (Points : 5)

Cash	8,000
Accounts receivable		7,840
Discounts revenue		160

Cash	8,000
Accounts receivable		7,840
Interest revenue		160

Cash	8,160
Accounts receivable		8,000
Interest revenue		160

Cash	8,000
Accounts receivable		8,000

Question 3. 3. (TCO 7) Which of the following does not change the balance in accounts receivable? (Points : 5)

Returns on credit sales Collections from customers Bad debts expense adjusting entry Write-offs

Question 4. 4. (TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is (Points : 5)

$2,270. $2,550. $2,470. $2,700

Question 5. 5. (TCO 7) At January 1, 2011, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Farley's credit sales have been uncollectible. During 2011, Farley wrote off $650,000 to accounts receivable. Credit sales for 2011 were $18,000,000. In its December 31, 2011 balance sheet, what amount should Farley report as allowance for uncollectible accounts? (Points : 5)

$230,000 $360,000 $590,000 $880,000

PLease give me answers ;)