Answer Exercises 5.5, 5.6 ,5.7 5.8 $300,000, cash collections, SO,000 of account

Question

Answer Exercises 5.5, 5.6 ,5.7 5.8

$300,000, cash collections, SO,000 of accounts receivable were written off as butu utului eivable and Alloy Required: of these accounts, Calculate the balances at the end of the year for the Accounts Receivabi ance for Bad Debts accounts. (Hint: Use T-accounts to analyze each of the plug in the amounts that you know, and solve for the ending balances.) The Ocl b. Checks issued c. and No. 483 fa A deposit mad d. ance but not in Returned with ad Debts accoun Mini-Exercise $12,200 at the end of 1 5.4 LO 5 Bad debts analysis -Allowance account The Allowance for Bad Del had a balance of $10.600 at the beginning of the year and $12,200 at the year. During the year (including the year-end adjustment), bad debts ay $18,800 was recognized. that was depe account was During a res noted that td cords suppo recorded as Required: Calculate the total amount of past-due accounts receivable that were writt uncollectible during the vear. (Hint: Make a T-account for the Allowance Debis account, plug in the amounts that you know, and solve for the missino sre written off as Allowance for Bad Mini-Exercise 5.5 LO 7,8 Bank recon following info a. The Aug b. There is. Cost flow assumptions - FIFO and LIFO using a periodic system Sales du the year were 700 units. Beginning inventory was 400 units at a cost of $10 per nie Purchase I was 500 units at $12 per unit. Purchase 2 was 300 units at $14 per unit. Required: Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system): a. FIFO b. LIFO å u is Outstan Interest books: Mini-Exercise 5.6 LO 7, 8 Cost flow assumptions-FIFO and LIFO using a periodic system The beginning inventory was 600 units at a cost of $20 per unit. Goods available for sale! during the year were 2,600 units at a total cost of $57,600. In May. 1.200 units were purchased at a total cost of $26,400. The only other purchase transaction occurred during October. Ending inventory was 1,100 units. A ban! Altho the be In the issue as a 8. The is $

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

5.5)

Value of opening Inventory and Purchases

= 400 units @ $10 + 500 units @ $12 + 300 units @ $14

= $ 14,200

Closing Inventory quantity

= Opening Inventory + Purchases – Sales

= 400 + 500 + 300 – 700

= 500 units

a)

Under FIFO Method of Inventory valuation, Inventory procured first is issued first and the closing Inventory consists of only latest purchases

So, Value of closing Inventory of 500 units

= 300 units @ $14 + (500 – 300) units @ $12

= $6,600

Cost of goods sold

= Value of opening Inventory and Purchases - Value of closing Inventory

= $ 14,200 - $6,600

= $7,600

b)

Under LIFO Method of Inventory valuation, Inventory procured last is issued first and the closing Inventory consists of only oldest purchases

So, Value of closing Inventory of 500 units

= 400 units @ $10 + (500 – 400) units @ $12

= $5,200

Cost of goods sold

= Value of opening Inventory and Purchases - Value of closing Inventory

= $ 14,200 - $5,200

= $9,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.