Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.

Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of

a.$266400

b. $290400

c. $133200

d. $157200

2. Bramble Corp.'s account balances at December 31, 2020 for Accounts Receivable and the Allowance for Doubtful Accounts are $700000 debit and $1550 credit. Sales during 2020 were $2828000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for

a

$7000.

b

$29830.

c

$28280.

d

$26730

 

3. Which of the following does not relate to relevance?

a	Materiality.

b	Predictive value.

c	Confirmatory value.

d	All of these answer choices relate to relevance

Answer rating: 100% (QA)

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