Please do not give image format (a2) For the fiscal year ended May 31, 2025, prepare the entry to record the decline in inventory to market, if any, using the lossmethod. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No entry" for the account titles and enter O for the amounts)Date Account Titles and ExplanationMay 31DebitCredit Sweet Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes andcondominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ende tay 31,2025.Jim Alcide, controller for Sweet, has gathered the following data concerning inventory.At May 31,2025, the balance in Sweet's Raw Materials Inventory account was $481,440. Alcide summarized the relevant inventorycost and market data at May 31, 2025, in the schedule below.Alcide assigned Patricia Devereaux an intern from a local college, the task of calculating the amount that should appear on Sweet'sMay 31, 2025, financial statements for inventory under the lower-of-cost or market rule as applied to each item in inventory.Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May 31.2025, Assume Sweet uses LIFO inventory costingAluminum sidingCedar shake sidingLouvered glass doorsThermal windowsTotalCost$82,600101,480132,160Inventory loss $165.200$481,440ReplacementCost$73,75093,692146.320148.680$462,442Sales Price$75,520110,920219,952182.664$589,056Net RealizableValue$66,080100,064198,594165,200$529,938(a1) Determine the write-down, if any, to reduce inventory to market at May 31, 2025Normal Profit$6.0188.73221.83018.172$54,752

Inventory write-down reduction in value of inventory is a process that records the loss of inventory…

Answered: (a1) Determine the write-down, if any,…

Business

Accounting

(a1) Determine the write-down, if any, to reduce inventory to market at May 31, 2025 inventory loss 5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Nash Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below: Cost Lower-of-Cost-or-Market 12/31/19 $317,820 $ 297,230 12/31/20 444,060 427,160 (a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20 (b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is…
RSA Corporation had the following items in inventory as at December 31, 2023: Item No. Quantity 100 A1 B4 C2 D3 120 140 160 Unit Cost $3.00 2.00 8.00 7.00 NRV $3.30 1.90 9.00 6.80 Assume that RSA uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2023, was $3,245 in total.
1. Prepare the entry to record the write-off ofuncollectible accounts during 2019. 2. Prepare the entries to record the recovery ofthe uncollectible account during 2019 3. Prepare the entry to record bad debt expense(BDE) at the end of 2019. Ending balance ofAFDA was Rp18,200 (Cr.) 4. Determine the ending balance of AccountsReceivable as of December 31, 2019. 5. What is the net realizable value of thereceivables at the end of 2019? 6. The company has a notes receivable ofRp24,000 at January 15, 2019 for 3 months at10% interest rate. Prepare journal entry as ofApril 15, 2019, on its due date.
DI-TWO Corporation had the following accounts and their balances on December 31 before any adjustments: Sales P5,000,000 Accounts Receivable 600,000 Allowance for doubtful accounts 25,000
The controller for Swifty Corp. is concerned about certain business transactions that the company experienced during 2023. The controller, after discussing these matters with various individuals, has come to you as the CFO for advice. Swifty follows ASPE. The transactions at issue are presented below: 1. 2. 3. The company has decided to switch from the direct write-off method for accounting for bad debts to the percentage-of- sales approach. Assume that Swifty has recognized bad debt expense as the receivables have actually become uncollectible in the following way: From 2022 sales From 2023 sales 2022 10,500 2023 3,900 14,900 The controller estimates that an additional $21,800 in bad debts will be written off in 2024: $3,700 applicable to 2022 sales and $18,100 to 2023 sales. Inventory has been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such (on account). At December 31, 2023, inventory billed and in the hands of consignees amounted…
Prepare any journal entries to record the revenue arrangement for Bonita Bundle A on January 2, 2020, and December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
Patrick Company had the following information in 2021: E (Click the icon to view the information.) If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be - X Data table O A. $800. B. $1,280. Accounts receivable 12/31/21 %24 13,000 OC. $520. OD. $480. Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment) 800 Credit service revenue during 2021 43,000 Cash service revenue during 2021 13,000 Collections from customers on account during 2021 42,000 Print Done
Required: (a) What is the total estimated uncollectible amount of accounts receivable? (b) Prepare journal entries to record impairment loss of receivable in 2021 using Statement of Financial Position approach. (c) Prepare a partial statement of financial position as at 31 December 2021 on the accounts receivable. (d) Prepare journal entries to record impairment loss of receivable in 2021 assuming the balance of the Allowance for Impairment account is $7.300 (Cr.) prior to adjustment.
a) Journalize the unrecorded transactions listed above using a perpetual inventory system (OMIT Explanations). b)Prepare an adjusted trial balance as at December 31, 2019. c)From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019.
Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the journal entry required by Albert Trading in this situation.
Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that $68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable.
Exercise 7-8 (Algo) Sales returns (LO7-4] Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a cre their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refu liability of $400,000. During 2021, Halifax sold merchandise on account for $12,500,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $613,000 in sales for credit, with $338,000 of those being of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales_ recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. 2.…