Reference no: EM131614361

Question 1: The following information relates to a company's accounts receivable: account receivable balance at the beginning of the year, $150,000; allowance for uncollectible accounts at the beginning of the year, $10,000(credit balance); credit sales during the year, $90,000; accounts receivables written off during the year $4,000; cash collections from the customers, $100,000.After a review of the uncollectible accounts, the company estimates that the required year-end balance for the uncollectible accounts should be $3,000. Calculate

1. The bad debts expenses for the year

2. The year- end gross & net account receivables balances.

Question 2: Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750 and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680 and deposits in transited were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is:

Question 3: Shown below is activity for one of the products of Denver Office Equipment. The company uses a perpetual inventory system.

January 1 balance, 500 units @ $55 $27,500

Purchases:

January 10: 500 units @ $60

January 20: 1,000 units @ $63

Sales:

January 12: 800 units

January 28: 750 units   

a) Compute the ending inventory and cost of goods sold assuming Denver uses FIFO.

b) Compute the ending inventory and cost of goods sold assuming Denver uses average cost.