1. At the beginning of the year, Accounts Receivable were $32,000 and the Allowance for Bad Debts account balance was $4,000. During the year, sales (all on account) were $8,000 greater than cash collections, bad debts expense totaled $2,000, and $1,500 of accounts receivable were written off as bad debts.

Calculate the balance at the end of the year for the Accounts Receivable account.

2. Sales during the year were 400 units. Beginning inventory was 150 units at a cost of $6 per unit. Purchase 1 was 200 units at $7 per unit. Purchase 2 was 250 units at $8 per unit.

Calculate Cost of goods sold under the LIFO cost flow assumption (using a periodic inventory system).

3. Sales during the year were 500 units. Beginning inventory was 250 units at a cost of $5 per unit. Purchase 1 was 400 units at $6 per unit. Purchase 2 was 200 units at $7 per unit.

Calculate Cost of goods sold under the FIFO cost flow assumption (using a periodic inventory system)

Answer rating: 100% (QA)

1 To calculate the balance at the end of the year for the Accounts Receivable account we need to consider the following Beginning balance of Accounts ... View the full answer