Quiz 2 - 11 Anthony Company acquires 50 units of inventory at a purchase price of \$10 each from Tiger Supplies payable on account with terms 2\/10 n\/30

# Quiz 2 - 11 Anthony Company acquires 50 units of inventory...

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11. Anthony Company acquires 50 units of inventory at a purchase price of \$10 each from Tiger Supplies, payable on account with terms, “2/10, n/30.” Anthony Company pays \$32 (total) for freight-in, and \$1 per unit to prepare the inventory for sale. Anthony Company pays Tiger Supplies within the 10 day discount period. Once Anthony Company has paid Tiger Supplies and has fully prepared the inventory for sale, what would be the total carrying value of the 50 units of inventory on Anthony Company’s books? Freight In Cost \$32 Prior preparation for sale: \$50 Inventory: 490 \$490+\$50+\$32 = \$572 12. Using the following information, calculate the amount of accounts receivable XYZ Company wrote off as uncollectible during its fiscal period ending December 31, 2013:
XYZ Company uses the percentage of credit sales method. Using historical data, it estimates that roughly 5% of credit sales will not be collected. For its fiscal period ending December 31, 2013, XYZ Company had \$6,200,000 in total sales, consisting of cash sales of \$2,600,000 and credit sales of \$3,600,000.

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