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FAR Chapt 11 Answer Key.xlsx - MERCHANDISE INVENTORY Assume...

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MERCHANDISE INVENTORYAssume the following:AccountDRCRMerchandise Invty - Start50,000Opening EntryPurchases100,000Purchases100,000Merchandise Invty - End30,000Cash100,000Merchandise Inventory30,000Income Summary30,000ALLOWANCE FOR DOUBTFUL ACCOUNTSDRCR% OF GROSS SALESAccounts Receivable300,000AccountDRCRAllowance for Doubtful Accounts7,5001% of SalesSales500,000 Bad Debts Expense5,000Sales Returns and Allowances15,000Allowance for Doubtful Accounts5,000Sales Discount9,000% OF NET SALES1% of SalesBad Debts Expense4,760Allowance for Doubtful Accounts4,760% OF ACCOUNTS RECEIVABLE - BY3% of Accounts ReceivableBad Debts Expense9,000Allowance for Doubtful Accounts9,000% OF ACCOUNTS RECEIVABLE - TO3% of Accounts ReceivableBad Debts Expense1,500Allowance for Doubtful Accounts1,50010K Beginning Allowance% AGING OF ACCOUNTS RECEIVABLEOutstanding%AmountOutstandingAllowanceCurrent0%90,000Current-1-30 days2%80,0001-30 days1,60031 to 60 days5%70,00031 to 60 days3,50061 to 90 days10%30,00061 to 90 days3,00091 to 180 days40%20,00091 to 180 days8,000181 to 360 days50%10,000181 to 360 days5,000Total300,000Total21,100Bad Debts Expense11,100Allowance for Doubtful Accounts11,100
COGS Computation:Merchandise Invty, Beg.50,000Add: Purchases100,000Total Goods Available for Sale150,000Less: Merch. Invty. End30,000Cost of Sales120,000Allowance for Doubtful AccountsBeg. Balance7,500Additional Provision5,000End. Balance12,500Allowance for Doubtful AccountsBeg. Balance7,500Additional Provision4,760End. Balance12,260Allowance for Doubtful AccountsAR - NETBeg. Balance7,500Additional Provision9,000End. Balance16,500Allowance for Doubtful AccountsAR - GROSSEnd Bal.. Allowance for DA9,000Less: Beg7,500Provision for Bad Debts1,500Allowance for Doubtful AccountsEnd Bal.. Allowance for DA21,100Less: Beg10,000Provision for Bad Debts11,100
REGAL SALES COMPANYCHART OF ACCOUNTSAS OF DECEMBER 31, 2022No.Account Title101 Cash102 Accounts Receivable103 Allowance for Doubtful accounts104 Notes Receivable105 Interest Receivable106 Merchandise Inventory107 Unused Supplies108 Prepaid Advertising Expense201 Furniture & Fixtures202 Accumulated Depreciation - Furniture & Fixtures203 Office Equipment204 Accumulated Depreciation - Office Equipment301 Accounts Payable302 Notes Payable303 Salaries Payable304 Rent Payable305 Taxes Payable306 Interest Payable307 Withholding Taxes Payable308 SS Premiums Payable309 Philhealth Premiums Payable310 Unearned Rent Income401 Cases, Capital402 Cases, Drawings403 Income & Expense Summary501 Sales502 Sales Return & Allowances503 Sales Discount601 Purchases602 Freight In603 Purchase Returns & Allowances604 Purchase Discount605 Freight Out606 Salaries Expense607 Advertising Expense608 Utilities Expense609 Rent Expense610 Supplies Expense611 Doubtful Accounts Expense
612 Depreciation Expense - Furniture & Fixtures613 Depreciation Expense - Office Equipment701 Rent Income801 Interest Expense

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Term
Spring
Professor
BryanD.Burks
Tags
Balance Sheet, Generally Accepted Accounting Principles, office equipment

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