Reference no: EM132446492
Questions -
Q1. Intell Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $855,000 in credit sales. Intell assumes that 1.5% of sales will eventually be uncollectible. Before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 6,500. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?
Q2. Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:
|
Date
|
Activity
|
Quantity
|
Unit Price
|
|
1-May
|
Beginning Inventory
|
175
|
$10.50
|
|
5-May
|
Purchase
|
200
|
$11.50
|
|
10-May
|
Sales
|
300
|
$25
|
|
15-May
|
Purchase
|
200
|
$13.50
|
|
20-May
|
Sales
|
250
|
$28
|
|
25-May
|
Purchase
|
150
|
$13.00
|
Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.
Q3. Adelphi Company purchased a machine on January 1, 2017, for $60,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000. Adelphi sold the machine on January 1, 2021 for $26,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021.