21.On December 1, 2010, Casio Trading Co. sold goods to a German company for 20,000 German marks (20,000 DM) to be collected on January 12, 2011. The exchange rates on December 1 and December 31, 2010 are US$0.50 = 1 DM and US$.60 = 1 DM, respectively. Calculate Casio’s revenue in U.S. dollars and its exchange gain or loss for 2010.
22.On December 11, 2010, Bisbee Co. purchased capsules from a Canadian company for 10,000 Canadian dollars (10,000 C$) to be paid on January 2, 2011. The exchange rates on December 11 and December 31, 2010 are US$0.79 = 1C$ and US$0.82 = 1C$, respectively. What is the cost of the capsules in U.S. dollars and the 2010 exchange loss?
23.On December 1, 2009, Mason Company delivered a shipment of goods to a Swiss customer for a price of 150,000 euros. If on that date 1.3 U.S. dollars could be exchanged for 1 euro, what entry would Mason record to convert the receivable to equivalent U.S. dollars?
24.The following are partial balance sheets for Pedro Co, dated December 31:
|
2009
|
2010
|
Accounts receivable
|
$55,000
|
$68,000
|
Allowance for doubtful accounts
|
(5,000)
|
(11,000)
|
Net realizable value
|
$50,000
|
$57,000
|
During 2010, $4,000 of accounts receivable were written off as uncollectible. Calculate the amount of bad debts expense recognized on Pedro’s 2010 income statement.
25.Paxton’s aging schedule of its accounts receivable on December 31 follows:
Account Age
|
Balance
|
Non-collection Likelihood
|
1-30 days
|
$100,000
|
3%
|
31-90 days
|
70,000
|
7%
|
Over 90 days
|
40,000
|
10%
|
The balance in Paxton’s allowance for doubtful accounts immediately prior to December 31 adjusting entries is $700 credit. Determine bad debts expense and the net realizable value of the December 31 accounts receivable.
26.On 12/31/09, Phoebe Company’s balance sheet revealed a $7,000 balance in its allowance for doubtful accounts. During 2010, $2,000 of accounts were written off and $500 of accounts receivable previously written off were collected. On 12/31/10, bad debts expense was estimated to be 5% on net credit sales, which were $400,000. Calculate the balance in the allowance for doubtful accounts on 12/31/10.