Question

QUESTION 19

The inventory records for Radford Co. reflected the following:

  

Beginning inventory @ May 1 1000 units @ $3.60

First purchase @ May 7 1100 units @ $3.80

Second purchase @ May 17 1300 units @ $3.90

Third purchase @ May 23 900 units @ $4.00

Sales @ May 31 3300 units @ $5.50

What is the amount of cost of goods sold assuming the LIFO cost flow method?

$12,540

$11,880

$12,850

$13,200

1 points   

QUESTION 20

Glasgow Enterprises started the period with 60 units in beginning inventory that cost $2.20 each. During the period, the company purchased inventory items as follows:

Purchase No. of Items Cost

1 270 $2.70

2 185 $2.80

3 55 $3.20

Glasgow sold 290 units after purchase 3 for $8.70 each.

What is Glasgow's cost of goods sold under FIFO?

$928

$638

$753

$834

1 points   

QUESTION 21

Domino Company ages its accounts receivable to estimate bad debts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $40,170 and $3080, respectively. During Year 2, the company wrote off $2420 in uncollectible accounts. In preparation for the company's estimate of bad debts expense for Year 2, Domino prepared the following aging schedule:

Number of Days Past Due Receivables Amount % Likely to be Uncollectible

Current $58,000 1%

0-30 23,900 5%

31-60 5560 10%

61-90 2620 25%

Over 90 2300 50%

Total $92,380

What amount will be reported as bad debts expense on the Year 2 income statement?

$4136

$3476

$2420

$1056

1 points   

QUESTION 22

Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $800, two were purchased on July 9 for $900 each, and two were purchased on September 23 for $950 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:

$2600.

$3600.

$900.

$3700.

1 points   

QUESTION 23

As of December 31, 2017, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $9300. During 2018, accounts receivable increased by $23,200, (that change includes $7600 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2018, accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for 2018 would be:

$892.

$2592.

$7600.

None of these answer choices are correct.

1 points   

QUESTION 24

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,000 and $4050, respectively. During Year 2, Allegheny wrote off $7500 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $6200. What amount will Allegheny report as bad debts Expense on its Year 2 income statement?

$9650

$2150

$7500

$6200

Answer 1

19.

Under lifo, latest purchases are sold first.

Cost of Goods Sold (3300 units)

= (900*4)+(1300*3.90)+(1100*3.80)

= 3600+5070+4180

= 12,850

Option C