1/Hogan Industries had the following inventory transactions occur during 2022:
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The company sold 306 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)
2/Masterfalls Corporation purchased a one-year insurance policy in January 2021 for $36,000. The insurance policy is in effect from March 2021 through February 2022. If the company neglects to make the proper year-end adjustment for the expired insurance:
A.net income and assets will be overstated by $30,000.
B.net income and assets will be overstated by $6,000.
C.net income and assets will be understated by $30,000.
D.net income and assets will be understated by $6,000.
3/The following information is related to December 31, 2021 balances.
During 2022, sales on account were $390,000 and collections on account were $230,000. The company wrote off $22,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year-end indicated that bad debts should be estimated at $144,000. Bad debt expense for 2022 is: