Reference no: EM132240419
Questions -
Q1) Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value Age of Account Estimated Collectible
$110,000 < 30 days old 99%
75,000 30 to 60 days old 92%
30,000 61 to 120 days old 77%
10,000 > 120 days old 16%
The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Q2) Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:
Date Activity Quantity Unit Price
5/1 Beginning Inventory 110 $10
5/5 Purchase 160 $12
5/15 Purchase 350 $14
5/25 Purchase 250 $16
Sales were 470 units at $20. Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.
Q3) Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:
Date Activity Quantity Unit Price
5/1 Beginning Inventory 125 $10
5/5 Purchase 250 $12
5/15 Purchase 240 $14
5/25 Purchase 250 $16
Sales were 530 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.