Reference no: EM131294932
Chen’s Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below:
Sales $175,000
Purchases 90,000
Inventory (beginning) 23,000
Inventory (ending) 17,000
Purchase returns and allowances 3,000
Purchase discounts 7,000
Transportation-in 4,000
Sales discounts 8,000
Sales returns and allowances 5,000
Refer to the account information for Chen’s Department Store.
1. Calculate Chen’s net sales.
a. $162,000
b. $167,000
c. $170,000
d. $175,000
2. Refer to the account information for Chen’s Department Store Calculate Chen’s cost of goods purchased
a. $ 84,000
b. $ 90,000
c. $ 103,000
d. $ 117,000
Problem #2 - Music Corporation
The data below is for Music Corporation for 2015.
Accounts receivable - January 1, 2015 $236,000 Credit sales during 2015 820,000 Collections from credit customers during 2015 590,000 Customer accounts written off as uncollectible during 2015 8,000 Allowance for doubtful accounts - January 1, 2015 8,700 Estimated uncollectible accounts based on an aging analysis 9,600 3. Refer to the data for Music Corporation.
What is the balance of Accounts Receivable at December 31, 2015?
a. $336,000
b. $448,400
c. $458,000
d $466,000
4. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2015?
a. $8,000
b. $8,100
c. $8,700
d. $8,900
5. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what is the balance in the Allowance for Doubtful Accounts after the bad debt expense adjustment?
a. $8,000
b. $8,100
c. $8,900
d. $9,600
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