16) A company purchases machinery for $10,000. It also spends $800 to ship it to its location,...
Question:
16)
A company purchases machinery for $10,000. It also spends $800 to ship it to its location, $600 to unpack and install it, $500 to test and debug it, and $300 to fix a crack caused by an accident during installation. The total cost of this machinery is
| $10,000 | ||
| $11,100 | ||
| $12,200 | ||
| $11,900 |
17)
When preparing a bank statement reconciliation, an NSF check should be
| an addition to the Bank Statement balance. | ||
| an addition to the Book balance. | ||
| a deduction from the Book balance. | ||
| a deduction from the Bank Statement balance. |
18)
At the end of 2019, the company's unadjusted trial balance reported the following selected amounts:
Accounts receivable $355,000 debit
Allowance for uncollectible accounts $500 credit
Net sales $800,000 credit
Assume the company determines its bad debt expense based on an aging which indicates that $1,775 is uncollectible. What amount should be debited to Bad Debt Expense when the year-end adjusting entry is prepared?
| $2,275 | ||
| $1,275 | ||
| $500 | ||
| $1,775 |
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