10.Roman House of Pizza (RHP) sells frozen pizzas to grocery stores. At the end of the current year, RHP had an accounts receivable balance of $175,000. Sales (all credit) for the year were $556,000. $2,700 in sales were returned because the expiration date on the products had passed. The balance in the allowance for doubtful accounts at the beginning of the year was $6,546. One account in the amount of $1,440 was written off because the customer went out of business. On the last day of the year, RHP recorded bad debts expense of $4,500. Prepare a schedule showing the ending balance in accounts receivable less the allowance for doubtful accounts.
11.All-Pages Book Company reports the following inventory transactions during the current month:
Date
EventNumber
of UnitsUnit
CostTotal
Cost
1stBeg. Inventory200$12$2,400
8thPurchase600148,400
13thSale400
24thPurchase200163,200
30thSale400
Required:
Fill in the following table using the periodic inventory system approach:
FIFOLIFO
Ending Inventory
Cost of Goods Sold
12.Record each of the following transactions net of any discount that applies:
a. Goods costing $148,000 were purchased from a supplier (on credit) for resale to customers. The goods were shipped FOB destination and arrived this morning.
b. Inventory was sold on credit to customers for $62,400 subject to a sales discount of 2% when payment is received within 10 days after the sale.
c. The next day, a customer returned goods that she had purchased for $3,500 (net)
d. At year-end it was estimated that 3% of the firm’s annual sales would ultimately be uncollectible. Annual sales totaled $2,000,000.
e. $6,420 of accounts receivable was determined to be uncollectible.
Account ASSETS = LIABILITIES + OWNERS’ EQUITY