Reference no: EM132627614

Question 1:

Age Group     Amount Receivable        Estimated Percent    Uncollectible

Not yet due $48,000 5%

0-30 days           past due                       $18,000                15%

21-90 days          past due                      $10,000                  40%

More than 90 days  past due                     $4,000                    80%

Total $80,000

The balance in the Account for Bad Debts before the recognition of the 2019 expense is $1,100. Using the data shown above calculate the bad debt expense for 2019.

Option 1: $13,400

Option 2: $12,300

Option 3: $4000

Option 4: $11,200

Option 5: $80,000

Question 2:

Date           Transaction          Number of Units             Unit Cost

March 1    Beginning inventory       1,000                        $7.20

March 10   Purchase                         600                       $7.25

March 16          Purchase                     800                    $7.30

March 23            Purchase                   600                     $7.35

When prices for raw materials and other purchased good are increasing LIFO valuation will result in a higher Cost of Goods Sold than if the inventory is being valued using FIFO. Using the LIFO method and the data above what will be the cost of sales if 1500 units are sold in March?

Option 1: $10,850

Option 2: $10,975

Option 3: $10,905

Option 4: $21,800

Option 5: $15,205