A company has inventory of 15 units at a cost of $12 each on August 1. On A they

Question

A company has inventory of 15 units at a cost of $12 each on August 1. On A they purchased 10 units at $13 per unit. On August 12 they purchased 20 units per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 12 after the sale? A) $140. B) S160. C) S210 D) $380. E) S590. 21 at $14 22. In reimbursing the petty cash fund: A) B) C) D) E) Cash is debited. Petty Cash is credited. Petty Cash is debited. Appropriate expense accounts are debited. No expenses are recorded. 23. The interest accrued on $3.600 at 7% for 60 days is: A) S 36. B) S 42 C) $252 D) $180. E) S420. On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; Allowance for Doubtful Accounts, credit balance of $951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?: A) $ 951. B) S3,992 C) $4,884. D) $5,835. E) S6,786. 24. The total cost of an asset less its accumulated depreciation is called: A) Historical cost. B) Book value. C) Present value D) Current (market) value. E) Replacement cost 25· 26. A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts

Explanation / Answer

Units Cost Value 21.. Aug.1 Beginning balance 15 12 180 Aug.5 Add: Purchases 10 13 130 Balance 15 12 180 10 13 130 12-Aug Add: Purchases 20 14 280 Balance 15 12 180 10 13 130 20 14 280 15-Aug Less: Sale 15 12 180 10 13 130 5 14 70 Balance 15 14 210 ANSWER: C) $ 210 22 ANSWER: C) Petty cash is debited The journal entry will be: Petty Cash Cash 23 3600*7%*60/360= 42 ANSWER: B) $ 42 24 Balance in Accounts receivables a/c 97250 Allowance for doubtful accounts reqd.=6%*97250= 5835 Credit balance in the Allowance for doubtful account 951 So, additional allowance reqd.=(5835-951)= 4884 So, the adjusting journal entry will be Bad debt expense 4884 Allowance for doubtful accounts 4884 ANSWER: C) $ 4884 25 The total cost (Gross value)of an asset less its accumulated depreciation is called B) Book Value Or Carrying value or net value of assets

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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