ACCT 311 Exam 2 Questions and Answers Already Passed Latest Update 2025-2026
Alton Co. had a cash balance of $32,300 recorded in its general ledger at the end of the month,
prior to receiving its bank statement. Reconciliation of the bank statement reveals the following
information:
Bank service charge: $15
Check deposited and returned for insufficient funds check: $120
Deposit recorded in the general ledger as $258 but should be $285
Checks outstanding: $1,800
After reconciling its bank statement, what amount should Alton report as its cash account
balance?
A. $30,392
B. $30,338
C. $32,138
D. $32,192 - Answers D. $32,192
Marr Co. had the following sales and accounts receivable balances, prior to any adjustments, at
year-end:
Credit sales = $10,000,000
Accounts receivable = $3,000,000
Allowance for uncollectible accounts = $50,000
Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at
year-end. By what amount should Marr adjust allowance for uncollectible accounts at year-end?
A. $140,000
B. $90,000
C. $0
D. $40,000 - Answers D. $40,000
On April 1, Aloe, Inc. factored $80,000 of its accounts receivable without recourse. The factor
retained 10% of the accounts receivable as an allowance for sales returns and charged 5%
commission on the gross amount of the factored receivables. What amount of cash did Aloe
receive from the factored receivables?
, A. $76,000
B. $68,400
C. $72,000
D. $68,000 - Answers D. $68,000
On December 31, Key Co. received two $10,000 non-interest-bearing notes from customers in
exchanged for services rendered. The note from Alpha Co., which is due in 9 months, was made
under customary trade terms, but the note from Omega Co., which is due in 2 years, was not.
The market interest rate for both notes at the date of issuance is 8%. The present value of $1
due in 2 years at 8% is .857. At what amounts should these two notes receivable be reported in
Key's December 31 balance sheet?
A. Alpha: 9,440 ; Omega: 10,000
B. Alpha: 10,000 ; Omega: 8,570
C. Alpha: 10,000 ; Omega: 10,000
D. Alpha: 9,440 ; Omega: 8,570 - Answers B. Alpha: 10,000 ; Omega: 8,570
A note payable was issued in payment for services received. The services had a fair value less
than the face amount of the note payable. The note payable has no stated interest rate. How
should the note payable be presented in the statement of financial position?
A. At the face amount with a separate deferred credit fro the discount calculated at the imputed
interest rate
B. At the face amount with a separate deferred asset for the discount calculated at the imputed
interest rate
C. At the face amount minus a discount calculated at the imputed interest rate
D. At the face amount - Answers C. At the face amount minus a discount calculated at the
imputed interest rate
During January, Metro Co., which maintains a perpetual inventory system, recorded the
following information pertaining to its inventory:
Units Unit Total Units
Cost Cost on hand
Balance on 1/1 1,000 $1 $1,000 1,000
Purchased on 1/7 600 $3 $1,800 1,600
Alton Co. had a cash balance of $32,300 recorded in its general ledger at the end of the month,
prior to receiving its bank statement. Reconciliation of the bank statement reveals the following
information:
Bank service charge: $15
Check deposited and returned for insufficient funds check: $120
Deposit recorded in the general ledger as $258 but should be $285
Checks outstanding: $1,800
After reconciling its bank statement, what amount should Alton report as its cash account
balance?
A. $30,392
B. $30,338
C. $32,138
D. $32,192 - Answers D. $32,192
Marr Co. had the following sales and accounts receivable balances, prior to any adjustments, at
year-end:
Credit sales = $10,000,000
Accounts receivable = $3,000,000
Allowance for uncollectible accounts = $50,000
Marr uses 3% of accounts receivable to determine its allowance for uncollectible accounts at
year-end. By what amount should Marr adjust allowance for uncollectible accounts at year-end?
A. $140,000
B. $90,000
C. $0
D. $40,000 - Answers D. $40,000
On April 1, Aloe, Inc. factored $80,000 of its accounts receivable without recourse. The factor
retained 10% of the accounts receivable as an allowance for sales returns and charged 5%
commission on the gross amount of the factored receivables. What amount of cash did Aloe
receive from the factored receivables?
, A. $76,000
B. $68,400
C. $72,000
D. $68,000 - Answers D. $68,000
On December 31, Key Co. received two $10,000 non-interest-bearing notes from customers in
exchanged for services rendered. The note from Alpha Co., which is due in 9 months, was made
under customary trade terms, but the note from Omega Co., which is due in 2 years, was not.
The market interest rate for both notes at the date of issuance is 8%. The present value of $1
due in 2 years at 8% is .857. At what amounts should these two notes receivable be reported in
Key's December 31 balance sheet?
A. Alpha: 9,440 ; Omega: 10,000
B. Alpha: 10,000 ; Omega: 8,570
C. Alpha: 10,000 ; Omega: 10,000
D. Alpha: 9,440 ; Omega: 8,570 - Answers B. Alpha: 10,000 ; Omega: 8,570
A note payable was issued in payment for services received. The services had a fair value less
than the face amount of the note payable. The note payable has no stated interest rate. How
should the note payable be presented in the statement of financial position?
A. At the face amount with a separate deferred credit fro the discount calculated at the imputed
interest rate
B. At the face amount with a separate deferred asset for the discount calculated at the imputed
interest rate
C. At the face amount minus a discount calculated at the imputed interest rate
D. At the face amount - Answers C. At the face amount minus a discount calculated at the
imputed interest rate
During January, Metro Co., which maintains a perpetual inventory system, recorded the
following information pertaining to its inventory:
Units Unit Total Units
Cost Cost on hand
Balance on 1/1 1,000 $1 $1,000 1,000
Purchased on 1/7 600 $3 $1,800 1,600
