a.8,200,000b. 6,200,000c. 2,000,000d. 4,200,000Problem 4-15 (AICPA Adapted) 81 moldeSteven Company provided the following information duringthe first year of operations:0913410000Total merchandise purchases for the current yearMerchandise inventory on December 31Collections from customersbgodno odeAll merchandise was marked to sell at 40% above cost. AllIsales are on a credit basis and all accounts are collectible,What amount should be reported as accounts receivable onDecember 31? od ovearlo batablepore aba. 1,000,000b. 3,840,000c. 5,000,000d. 5,800,0007,000,0001,400,0004,000,000120000 030000,000at amount was received bremittance in full?a. 2,744,000b. 2,940,000c. 2,944,000d. 3,140,000Problem 4-17 (PHILCPA AGermany Company started businesyear. The entity established an all-estimated at 5% of credit sales.wrote off P50,000 of uncollectibleFurther analysis showed thamounted to P9,000,000 and ewas P1,500,000. Goods were sThe total sales comprised 80%sales. Total collections from eamounted to P6,000,000.1. What amount should bea. 10,500,000b. 18,750,000c. 12,000,0008,400,000d.2. What amount shouldof accounts reivabla. 1,980,000 =b. 2,350,000c. 1,930,000d. 2,400,000 2021. Onided foral creditethod ofapplyinge.Ciblee thatended2021000000oneone00Problem 5-10 (AICPA Adapted)Orr Company prepared an aging of accounts receivable onDecember 31 and determined that the net realizable valueof the accounts receivable was P2,500,000.Accounts receivable on December 31Allowance for doubtful accounts on January 1Accounts written off as uncollectibleRecovery of accounts written offWhat amount should be recognized as doubtful accountsexpense for the current year?a. 230,000b. 200,000c. 150,000d. 100,0002,700,000280,000230,00050,000Problem 5-11 (IAA)Roanne Company used the allowance method of accountingfor uncollectible accounts. During the current year, the entityhad charged P800,000 to bad debt expense and wrote offaccounts receivable of P900,000 as uncollectible.What was the decrease in working capital?a.900,000b. 800,000C. 100,000d.0Galaxy S21+ 5G

Account receivables closing balance is calculated as : Opening Balance + Total credit sale…

C. 2,00 d. 4,200,000 Problem 4-15 (AICPA Adapted) Steven Company provided the following information during the first year of operations: Total merchandise purchases for the current year Merchandise inventory on December 31 Collections from customers All merchandise was marked to sell at 40% above cost. All Isales are on a credit basis and all accounts are collectible What amount should be reported as accounts receivable c on December 31? a. 1,000,000 b. 3,840,000 c. 5,000,000 d. 5,800,000 120 7,000,000 1,400,000 4,000,000 000 000,000

C. 2,00 d. 4,200,000 Problem 4-15 (AICPA Adapted) Steven Company provided the following information during the first year of operations: Total merchandise purchases for the current year Merchandise inventory on December 31 Collections from customers All merchandise was marked to sell at 40% above cost. All Isales are on a credit basis and all accounts are collectible What amount should be reported as accounts receivable c on December 31? a. 1,000,000 b. 3,840,000 c. 5,000,000 d. 5,800,000 120 7,000,000 1,400,000 4,000,000 000 000,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 8PEA: Financial statement data for years ending December 31 for Holland Company follow: a. Determine the...

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On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
01 Ross Company provided the following data for the current. year: Problem 14-11 (IAA) Retail Cost 1,650,000 4,200,000 2,000,000 6N Beginning inventory Net purchases Net markup Net markdown 800,000 200,000 - Net sales The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIF0 retail method, the cost ratio would have been 60%. 1. What is the amount of net purchases at original retail before markup and markdown? a. 7,600,000 b. 7,000,000 с. 4,200,000 d. 6,400,000 2. What amount was reported as net sales? a. 9,000,000 b. 3,000,000 c. 6,000,000 d. 7,000,000 3. What amount was reported as cost of goods sold? a. 3,900,000 b. 3,000,000 c. 3,600,000 d. 1,800,000 398 E HA C
Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Y3 Cost of merchandise sold $992,800 $611,010 Inventories: Beginning of year 239,440 167,900 End of year 344,560 239,440 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.
LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date of Transaction Number of Units Per unit Total Apr 3 - inventory 40 $670 $26,800 8 - purchase 120 690 82,800 11- sale 60 1,120 67,200 30 - sale 50 1,120 56,000 May 8 - purchase 100 700 70,000 10 - sale 80 1,120 89,000 19 - sale 30 1,120 33,600 28 - purchase 120 707 84,840 June 5 - sale 60 1,260 75,600 16 - sale 40 1,260 50,400 21 - purchase 180 712 128,160 28 - sale 190 1,260 239,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit…
FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 40 $670 $26,800 8 Purchase 120 690 82,800 11 Sale 60 1,120 67,200 30 Sale 50 1,120 56,000 May 8 Purchase 100 700 70,000 10 Sale 80 1,120 89,600 19 Sale 30 1,120 33,600 28 Purchase 120 707 84,840 June 5 Sale 60 1,260 75,600 16 Sale 40 1,260 50,400 21 Purchase 180 712 128,160 28 Sale 190 1,260 239,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold…
FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date of transaction Number of Units Per Unit Total Apr3 - Inventory 40 $670 $26,800 8- purchases 120 690 82,800 11 - sale 60 1,120 67,200 30 - sale 50 1,120 56,000 May 8 - purchase 100 700 70,000 10 - sale 80 1,120 89,600 19- sale 30 1,120 33,600 28- purchase 120 707 84, 840 June 5 - sale 60 1,260 75,600 16 - sale 40 1,260 50,400 21 - purchase 180 712 128,160 28 - sale 190 1,260 239,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Perpetual…
FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost…
LIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 36 $375 $13,500 8 Purchase 72 450 32,400 11 Sale 48 1,250 60,000 30 Sale 30 1,250 37,500 May 8 Purchase 60 500 30,000 10 Sale 36 1,250 45,000 19 Sale 18 1,250 22,500 28 Purchase 60 550 33,000 June 5 Sale 36 1,315 47,340 16 Sale 48 1,315 63,120 21 Purchase 108 600 64,800 28 Sale 54 1,315 71,010 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold…
FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 48 $450 $21,600 8 Purchase 96 540 51,840 11 Sale 64 1,500 96,000 30 Sale 40 1,500 60,000 May 8 Purchase 80 600 48,000 10 Sale 48 1,500 72,000 19 Sale 24 1,500 36,000 28 Purchase 80 660 52,800 June 5 Sale 48 1,575 75,600 16 Sale 64 1,575 100,800 21 Purchase 144 720 103,680 28 Sale 72 1,575 113,400 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit…
Refer to the following selected financial information from Phantom Corp. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Year 2 Year 1 Merchandise inventory 280,000 262,500 Cost of goods sold 477,400 424,100 Multiple Choice 214.1. 241.0. 10 of 10 636 PM 3/28/2022 Insert Prt Sc Del F10 F1 F8 F9 Lock F6 F7
FIFO Perpetual Inventory And LIFO PLEASE The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 78 $225 $17550 8 Purchase 156 270 42120 11 Sale 104 750 78000 30 Sale 65 750 48750 May 8 Purchase 130 300 39000 10 Sale 78 750 58500 19 Sale 39 750 29250 28 Purchase 130 330 42900 June 5 Sale 78 790 61620 16 Sale 104 790 82160 21 Purchase 234 360 84240 28 Sale 117 790 92430 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit…