Reference no: EM132385761

Question

Part A)

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 $840,000 in credit sales. Arundel assumes that 1.5% 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?

Part B)

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   $11.00

5/5  Purchase    200    $12.00

5/10   Sales   300    $25

5/15   Purchase   200   $14.00

5/20   Sales   250   $28

5/25  Purchase   150   $13.50

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