Exam 6: Reporting and Analyzing Long-Lived Assets

Using the allowance method the uncollectible accounts for the year are estimated to be $50000.If the balance for the Allowance for Doubtful Accounts is $9000 before adjustment what is the balance after adjustment?

The Allowance for Doubtful Accounts is necessary because

When the allowance method of accounting for uncollectible accounts is used Bad Debt Expense is recorded

Two methods of accounting for uncollectible accounts are the

An inventory turnover that is too high may indicate that the company is losing sales opportunities because of inventory shortages.

Allowance for Doubtful Accounts on the balance sheet

Olympus Climbers Company has the following inventory data: July 1 Beginning inventory 30 units at \ 19 \ 570 7 Purchases 105 units at \ 20 2,100 22 Purchases 15 units at \ 22 330 \3 ,000 A physical count of merchandise inventory on July 31 reveals that there are 48 units on hand.Using the FIFO inventory method the amount allocated to cost of goods sold for July is

When using the allowance method bad debt expense is recorded when an individual customer defaults.

Use of the LIFO inventory valuation method enables a company to report paper or phantom profits.

The allowance method of accounting for uncollectible accounts is required if

An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid the greater the probability that it will eventually be collected.

Laser Listening has the following inventory data: Nov. 1 Inventory 30 units @\ 6.00 each 8 Purchase 120 units @\ 6.45 each 17 Purchase 60 units @\ 6.30 each 25 Purchase 90 units @\ 6.60 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand.Assuming that the specific identification method is used and that ending inventory consists of 30 units from each of the three purchases and 10 units from the November 1 inventory cost of goods sold is

In periods of rising prices which is an advantage of using the LIFO inventory costing method?

The LIFO inventory method assumes that the cost of the latest units purchased is

Manufacturers usually classify inventory into all the following general categories except:

On May 1 2022 Heineken Company had beginning inventory consisting of 300 units with a unit cost of $7.During May the company purchased inventory as follows: 600 units at $7 900 units at $8 The company sold 1500 units during the month for $12 per unit.Heineken uses the average-cost method.The value of Heineken's inventory at May 31 2022 is

Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet.

Dole Industries had the following inventory transactions occur during 2022: Units Cost'unit Feb. 1,2022 Purchase 90 \ 90 Mar. 14,2022 Purchase 155 \ 94 May 1, 2022 Purchase 110 \ 98 The company sold 255 units at $126 each and has a tax rate of 30%.Assuming that a periodic inventory system is used what is the company's gross profit using FIFO? (rounded to whole dollars)

Cash realizable value is determined by subtracting Allowance for Doubtful Accounts from Net Sales.

Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 108 \ 45 Mar. 14,2022 Purchase 186 \ 47 May 1, 2022 Purchase 132 \ 49 The company sold 306 units at $63 each and has a tax rate of 30%.Assuming that a periodic inventory system is used and operating expenses of $1800 what is the company's after-tax income using FIFO? (rounded to whole dollars)