Exam4_of_6_Review_Answer

Exam4_of_6_Review_Answer - $100 July 40 $6.00 $240 November...

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YOU GOT 100 % Problem 1 Record bad debts expense below and the entry to write off an $800 invoice Estmated Uncollectible Accounts Age Interval Balance Percent Amount Not past due $10,000 2.0% $200 1-30 past due $8,000 5.0% $400 31-60 past due $6,000 10.0% $600 61-90 past due $4,000 20.0% $800 > 90 past due $1,000 80.0% $800 $29,000 $2,800 Cash Allow. for bad debt Inventory = $3,000 $29,000 -$1,000 $45,000 $10,000 -$1,800 -$800 $800 Event Units Cost per unit Total cost Bal. 1/1/04 20 $4.00 $80 Purchases: February 20 $5.00 $100 July 40 $6.00 $240 November 20 $8.00 $160 Totals 100 $580 What is Cost of Good Sold for 2004 and Inventory at 12/31/2004 using the following methods? FIFO Cost of goods sold Inventory Bal.1/1/04 20 $4.00 $80 February 20 $5.00 $100 July 40 $6.00 $240 November 20 $8.00 $160 $420 $160 LIFO Bal.1/1/04 20 $4.00 $80 February 20 $5.00
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Unformatted text preview: $100 July 40 $6.00 $240 November 20 $8.00 $160 Accounts receivable Common stock Preliminary balance 12/31/2004 Entry to record bad debts expense: Entry six months later to subsequently write off an 800 invoice Problem 2 During 2004, 80 units are sold; 20 remain in inventory. $500 $80 Average $464 $116 Straight-line $4,800 Double declining balance $10,000 Problem 3. You purchase a forklift for $25000. You will use it for 5 years and expect to sell it for $1,000 after the 5 years. Calculate depreciation expense under the two different methods for the first year. Assume a full year's depreciation in the first year. CORRECT e. Retained earnings $66,000-$1,800 Bad debts expense...
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Exam4_of_6_Review_Answer - $100 July 40 $6.00 $240 November...

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