Mater Company uses the periodic inventory method and had the following inventory information available. Units Unit Cost Total Cost 1/1 Beginning inventory 100 $4 $400 3/20 Purchase 500 $6 $3,000 7/14 Purchase 100 $8 $800 11/28 Purchase 300 $10 $3,000 Totals 1,000 $7,200 A physical count of inventory on December 31 revealed that there were 330 units on hand. As to units sold, the company sold each unit for $15. Instructions: Answer each of the next four independent questions regarding Mater Company. Assume that the company uses the FIFO method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Dumbo Company's aging of the accounts receivable revealed the following at December 31, 2019. Estimated % Uncollectible Current accounts $160,000 1% 1 - 30 days past due $14,000 4% 31 - 60 days past due $12,000 7% 61 - 90 days past due $7,000 12% Over 90 days past due $8,000 34% Total Accounts Receivable $201,000 You should complete the aging schedule and then answer each of the following independent questions. (a) Assume Dumbo Company had a $2,120 credit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] . (b) Assume Dumbo Company had a $930 debit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] . (c) Dumbo Company's accounts receivable net (cash) realizable value as reported on the balance sheet on December 31, 2019, is $ [ Select ] . Answer 1: (You left this blank) Answer 2: (You left this blank) Answer 3: (You left this blank) Answer 4: (You left this blank) Answer 5: (You left this blank) Answer 6: (You left this blank) Answer 7: (You left this blank) On November 1, 2019, Belle Company sold merchandise to a customer and received a 10%, 9-month promissory note with a principal amount of $180,000. Instructions: Compute each of the following for Belle Company. Interest revenue for the full term of the note is: $ . Interest revenue to be recognized in 2019 is: $ . Interest revenue to be recognized in 2020 is: $ . Maturity value of the note is: $ . Answer 1: (You left this blank) Answer 2: (You left this blank) Answer 3: (You left this blank) Answer 4: (You left this blank)

Mater Company uses the periodic inventory method and had the following inventory information available. Units Unit Cost Total Cost 1/1 Beginning inventory 100 $4 $400 3/20 Purchase 500 $6 $3,000 7/14 Purchase 100 $8 $800 11/28 Purchase 300 $10 $3,000 Totals 1,000 $7,200 A physical count of inventory on December 31 revealed that there were 330 units on hand. As to units sold, the company sold each unit for $15. Instructions: Answer each of the next four independent questions regarding Mater Company. Assume that the company uses the FIFO method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ . The value of the cost of goods sold for the year is $ . The gross profit for the year is $ . Dumbo Company's aging of the accounts receivable revealed the following at December 31, 2019. Estimated % Uncollectible Current accounts $160,000 1% 1 - 30 days past due $14,000 4% 31 - 60 days past due $12,000 7% 61 - 90 days past due $7,000 12% Over 90 days past due $8,000 34% Total Accounts Receivable $201,000 You should complete the aging schedule and then answer each of the following independent questions. (a) Assume Dumbo Company had a $2,120 credit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] . (b) Assume Dumbo Company had a $930 debit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] . (c) Dumbo Company's accounts receivable net (cash) realizable value as reported on the balance sheet on December 31, 2019, is $ [ Select ] . Answer 1: (You left this blank) Answer 2: (You left this blank) Answer 3: (You left this blank) Answer 4: (You left this blank) Answer 5: (You left this blank) Answer 6: (You left this blank) Answer 7: (You left this blank) On November 1, 2019, Belle Company sold merchandise to a customer and received a 10%, 9-month promissory note with a principal amount of $180,000. Instructions: Compute each of the following for Belle Company. Interest revenue for the full term of the note is: $ . Interest revenue to be recognized in 2019 is: $ . Interest revenue to be recognized in 2020 is: $ . Maturity value of the note is: $ . Answer 1: (You left this blank) Answer 2: (You left this blank) Answer 3: (You left this blank) Answer 4: (You left this blank)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Mater Company uses the periodic inventory method and had the following inventory information available.

		Units	Unit Cost	Total Cost
1/1	Beginning inventory	100	$4	$400
3/20	Purchase	500	$6	$3,000
7/14	Purchase	100	$8	$800
11/28	Purchase	300	$10	$3,000
	Totals	1,000		$7,200

A physical count of inventory on December 31 revealed that there were 330 units on hand. As to units sold, the company sold each unit for $15.

Instructions: Answer each of the next four independent questions regarding Mater Company.

Assume that the company uses the FIFO method.

The value of the ending inventory on December 31 is $ .
The value of the cost of goods sold for the year is $ .
The gross profit for the year is $ .

Assume that the company uses the average cost method.

The value of the ending inventory on December 31 is $ .
The value of the cost of goods sold for the year is $ .
The gross profit for the year is $ .

Assume that the company uses the LIFO method.

The value of the ending inventory on December 31 is $ .
The value of the cost of goods sold for the year is $ .
The gross profit for the year is $ .

Dumbo Company's aging of the accounts receivable revealed the following at December 31, 2019.

		Estimated % Uncollectible
Current accounts	$160,000	1%
1 - 30 days past due	$14,000	4%
31 - 60 days past due	$12,000	7%
61 - 90 days past due	$7,000	12%
Over 90 days past due	$8,000	34%
Total Accounts Receivable	$201,000

You should complete the aging schedule and then answer each of the following independent questions.

(a) Assume Dumbo Company had a $2,120 credit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] .

(b) Assume Dumbo Company had a $930 debit balance in Allowance for Doubtful Accounts at December 31, 2019, before making the adjusting entry. Dumbo Company, in preparing the adjusting entry on December 31, 2019, to recognize bad debt expense, should debit [ Select ] and credit [ Select ] for $ [ Select ] .

(c) Dumbo Company's accounts receivable net (cash) realizable value as reported on the balance sheet on December 31, 2019, is $ [ Select ] .

Answer 1:

(You left this blank)

Answer 2:

(You left this blank)

Answer 3:

(You left this blank)

Answer 4:

(You left this blank)

Answer 5:

(You left this blank)

Answer 6:

(You left this blank)

Answer 7:

(You left this blank)

On November 1, 2019, Belle Company sold merchandise to a customer and received a 10%, 9-month promissory note with a principal amount of $180,000. Instructions: Compute each of the following for Belle Company.

Interest revenue for the full term of the note is: $ .

Interest revenue to be recognized in 2019 is: $ .

Interest revenue to be recognized in 2020 is: $ .

Maturity value of the note is: $ .

Answer 1:

(You left this blank)

Answer 2:

(You left this blank)

Answer 3:

(You left this blank)

Answer 4:

(You left this blank)

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