Reference no: EM132317368

Question

1. Arundel Company uses aging to estimate uncollectible.  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

$200,000             < 30 days old               98.5%

70,000                 30 to 60 days old         93.5%

35,000                 61 to 120 days old       70.5%

5,000                   > 120 days old            17.0%  

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.

2. Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date:       Activity:                      Quantity:       Unit Price:

5/1         Beginning Inventory          175             $12.00

5/5         Purchase                        200             $10.50

5/10        Sales                             300             $25

5/15        Purchase                        200             $13.00

5/20        Sales                             250             $28

5/25        Purchase                        150             $13.00

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

3.Adelphi Company purchased a machine on January 1, 2017, for $70,000.  The machine was estimated to have a service life of ten years with an estimated residual value of $5,000.  Adelphi sold the machine on January 1, 2021 for $22,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number.