Unformatted text preview: • Received $24,000 for partial payment of accounts receivable. • Reinstated a customer’s account of $200. • Sassicaia estimates that 4% of its ending accounts receivable balance will be uncollectible. Sassicaia uses the allowance method to account for bad debts. REQUIRED 1. What is net income in 2011? 2. What is ending inventory on the December 31, 2011 Balance Sheet? 3. What is the book value of the delivery truck on the December 31, 2011 Balance Sheet? 4. What is the cash (net) realizable value of Accounts Receivable on the December 31, 2011 Balance Sheet? 5. What is gross margin if Sassicaia uses LIFO instead of FIFO? 6. If Sassicaia sold the delivery truck on January 1, 2012 for $6,500, what would be the gain or loss, and what would be the cash flow....
View Full Document
- Fall '08
- Financial Accounting, Generally Accepted Accounting Principles, delivery truck, Accounts Receivable balance, Sassicaia Inc., Sassicaia