Exam 6: Receivables and Inventories

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the customers' ledger indicates doubtful accounts of $15,000. Compute the adjusted balance in the allowance for doubtful accounts?

The units of Product YY2 available for sale during the year were as follows: \ 30 each at 16 units Inventory Apr 1 \ 33 each at 30 units Purchase Jun 16 \ 37 each at 45 units Purchase Sep 28 There are 15 units of the product in the physical inventory at March 31. The periodic inventory system is used. Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Average cost is a method of inventory valuation.

A 90-day, 10% note for $10,000 dated April 1 is received from a customer on account. The face value of the note is:

The due date of a 60-day note dated July 12 is:

The amount of the promissory note plus the interest earned on the due date is called the:

Beginning inventory, purchases, and sales data for May are as follows: 20 units at \ 40 each Inventory May 1 18 units at \ 42 each Purchase 12 25 units Sales The business uses the first-in, first-out inventory costing method. Determine the cost of the inventory on hand at the end of May.

Merchandise Inventory is presented on the balance sheet in the current assets section.

Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $300,000, compute the amount of the adjustment to record the provision for doubtful accounts.

Net income is reduced when a specific receivable is written off under the analysis of receivables method.

The inventory data for an item for November are: 25 units at \ 20 each Inventory Nov. 1 30 units at \ 21 each Purchase 10 10 units at \ 22 each Purchase 30 35 units Sale Using the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?

During inflationary periods, the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method of inventory costing.

65 units at \ 6 each Purchase September 5 55 units at \ 8 each Purchase September 13 44 units at \ 10 each Purchase September 29 70 units Ending Inventory September 30 Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Use the following data to calculate the cost of ending inventory under average cost method. 15 units at \ 20 each Beginning Inventory September 1 20 units at \ 25 each Purchase September 10 25 units at \ 28 each Purchase September 20 30 units Ending Inventory September 30

Allowance for Doubtful Accounts is a contra equity account.

Use the following data to calculate the cost of ending inventory under the FIFO method. 15 units at \ 20 each Beginning Inventory September 1 20 units at \ 25 each Purchase September 10 25 units at \ 28 each Purchase September 20 30 units Ending Inventory September 30

The following units are available for sale during the year: 10 units at \ 18 each Beginning Inventory January 1 30 units at \ 20 each Purchase Apri1 3 28 units at \ 25 each Purchase August 31 17 units at \ 30 each Purchase September 29 21 units Ending Inventory December 31 Determine ending inventory cost by (a) FIFO method, (b) LIFO method, and (c) average cost method.

Determine the due date and amount of interest due at maturity on the following notes (Assume 360 days in a year): Interest Maturity Interest Term Face Prigination Date Aumount Rate Rate of Note Amount 9\% 60 clays \ 5,000 (a) March 1 8\% 120 days \ 9,000 (b) May 15

If merchandise inventory is being valued at cost and the price level is consistently rising, which method of costing will yield the highest inventory?

In reference to a promissory note, the person who is to receive payment is called the: