Reference no: EM132555685

Question 1: Annapolis Company's bank statement indicated an ending cash balance of $9,040. Alpha's accountant discovered that outstanding checks amounted to $565 and deposits in transit were $480. Additionally, the bank statement showed service charges of $30. What is the correct adjusted ending cash balance

Question 2: Baltimore 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

$135,000            < 30 days old                99%

75,000                 30 to 60 days old           92%

30,000                 61 to 120 days old           71%

8,000                     > 120 days old            17%

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 3: Dorchester Company had the following balances at the end of 2018 and 2019 respectively:

Net Credit Sales - $940,000 for 2018 and $972,000 for 2019.

Accounts Receivable - $92,000 for 2018 and $115,000 for 2019.

Allowance for Doubtful Accounts - $4,000 for 2018 and 6,500 for 2019

Calculate the accounts receivable turnover ratio to one decimal place.

Question 4: Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date        Activity                       Quantity             Unit Price

5/1       Beginning Inventory        150                    $10

5/5            Purchase                  200                    $12

5/15           Purchase                  320                    $14

5/25               Purchase               310                   $16

Sales were 480 units at $20. Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Question 5: Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date                Activity               Quantity                  Unit Price

5/1             Beginning Inventory   125                      $10

5/5                 Purchase                225                   $12

5/15                 Purchase              250                    $14

5/25                  Purchase             250                   $16

Sales were 570 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Question 6: Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 10.5. What was the company's Days Outstanding in Inventory. Assume a 365 day year. Round to one decimal place.