Reference no: EM132593006

Question 1: Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

Dollar Value            Age of Account              Estimated Collectible

$240,000               < 30 days old                        99.5%

65,000                    30 to 60 days old                 95.0%

35,000                      61 to 120 days old                77.0%

8,000                      > 120 days old                   15.0%

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.

Question 2: Arundel 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 $870,000 in credit sales. Arundel assumes that 1.0% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 4,500. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?

Question 3: 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

5/1            Beginning Inventory        175                        $11.50

5/5            Purchase                      200                         $10.50

5/10              Sales                       300                            $25

5/15               Purchase                 200                         $13.50

5/20              Sales                        250                            $28

5/25               Purchase                    150                          $12.50

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.

Question 4: Adelphi Company purchased a machine on January 1, 2017, for $100,000. 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 $21,000. 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. Enter a loss as a negative number.

Question 5: Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.3% and the state unemployment tax rate is 4.0%. Barbara's wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes. Barbara earns $18 per hour and worked 45 hours for the week ended January 13 , 2019. Baltimore will withhold $220 federal income taxes. Use this information to determine the total payroll tax expense for Baltimore Company as related to Barbara's earnings. (Round to the closest cent)