{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Pass Midterm 2 master

Pass Midterm 2 master - This document contains all midterm...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
This document contains all midterm 2 exams that are available to me electronically.Writing space has been reduced for more efficient copying. ___________________________ Name _______________ Four Digit Number Class: Circle One: MW2 MW4 MID-TERM EXAM II BUAD 250 a MARCH 22, 2002 Pages Topics Points Score 1The Cover Sheet 3 _____ 2 Accounting for Uncollectible Accounts Receivable 90 ______ 3.5 Accounting for Various Accounting Topics 108 ______ 6 Inventory Methods 90 ______ 7 Inventories and Lower-of- Cost-or-Market 59 ______ Totals 350 ______ I pledge on my honor that I have not received any help from any unauthorized sources nor have I provided any unauthorized help to any fellow student. __________________________________ signed
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Accounting for Uncollectible Accounts Receivable : [1a] The Patricia Company was formed in Year 1 and sells goods only on account. The firm had proper balances in Accounts Receivable and the Allowance for Uncollectible Accounts of $700 and $80, respectively, at the end of Year 2. Selected data related to uncollectible accounts receivable are presented below for your use as appropriate. Year 3 Year 4 Year 5 Collections on Account $500 $800 $700 Credit Sales 700 900 950 Write-Offs of AR 70 60 140 Recoveries of Previous Write-Offs 20 30 40 When using the percentage of sales method, assume the firm has correctly estimated that the percentage of sales that will not be collected is 8% in Year 3. However, assume the firm increases this estimate to be 10% for Year 4 and Year 5 When using the aging method of accounting for uncollectible accounts receivable, assume the firm properly estimated at the end of Year 3 that $780 of its AR would be collectible. At the end of Year 4, the firm has estimated that it will not be able to collect $40 of its AR balance. At the end of Year 5, the firm has estimated that it will collect $900 of its AR balance at that date. Requirements: Using the Percentage of Sales Method [Income Statement Method] , calculate the following values and place your answer in the space provided. Bad Debts Expense for Year 3 $________ Carrying value of AR at Dec. 31, Year 4 $________ AUA at December 31, Year 5 $________ Using the Aging Method [Balance Sheet Method], calculate the following values and place your answer in the space provided. Bad Debts Expense for Year 3 $_______ Carrying Value of AR at December 31, Year 4$_______ AUA at December 31, Year 5 $_______ Accounting for Various Accounting Topics: [2a] For each of the items below, determine the best answer and place it in the blank provided. Johann Construction Company has a contract to construct a bridge for the City of Los Angeles at a total price of $6,000 [for convenience, all numbers refer to thousands of dollars]. Johann Company had estimated when negotiating the contract that the bridge might cost $4,000 to build. In Year 1 of the project, Johann incurred $1,200 in costs on
Image of page 2
the bridge. At the end of Year 1, Johann estimates the bridge will require another $3,200 to complete.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern