Reference no: EM132240412

Questions -

Q1. Annapolis Company's bank statement indicated an ending cash balance of $8,440. Alpha's accountant discovered that outstanding checks amounted to $565 and deposits in transit were $760. Additionally, the bank statement showed service charges of $35. What is the correct adjusted ending cash balance

Q2. Baltimore Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists

Dollar Value Age of Account Estimated Collectible

$175,000 < 30 days old 98%

80,000 30 to 60 days old 91%

35,000 61 to 120 days old 77%

14,000 > 120 days old 11%

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.

Q3. Dorchester Company had the following balances at the end of 2018 and 2019 respectively:

Net Credit Sales - $885,000 for 2018 and $1,092,000 for 2019.

Accounts Receivable - $80,000 for 2018 and $115,000 for 2019.

Allowance for Doubtful Accounts - $6,000 for 2018 and 6,500 for 2019

Calculate the accounts receivable turnover ratio to one decimal place.

Q4. 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 220 $12

5/15 Purchase 260 $14

5/25 Purchase 350 $16

Sales were 440 units at $20. Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Q5. 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 150 $10

5/5 Purchase 250 $12

5/15 Purchase 250 $14

5/25 Purchase 200 $16

Sales were 560 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Q6. Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 11.6. What was the company's Days Outstanding in Inventory. Assume a 365 day year. Round to one decimal place.