1. The following information pertains to Lindsey Corp. at the end of the year: Credit Sales ....

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Question:

1. The following information pertains to Lindsey Corp. at the end of the year:

Credit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $162,500
Accounts Payable. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 21,000
Accounts Receivable . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 32,500
Allowance for Uncollectible Accounts . . . . . .. . . . . . . . . . . . . . . . 1,400 debit
Cash Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,900

Lindsey Corp. uses the percentage-of-credit-sales method and estimates that 10% of the credit sales are uncollectible. After the year-end adjustment, what amount of bad debt expense would Lindsey report for the year?

$18,750
$17,650
$14,850
$16,250

2. Eve's Apples opened a business on January 1, 2015, and paid for two insurance policies effective that date. The liability policy was $57,600 for eighteen-months, and the crop damage policy was $14,400 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2015?

$45,600
$26,400
$7,200
$72,000

3. Baker Fine Foods has beginning inventory for the year of $10,500. During the year, Baker purchases inventory for $110,000 and ends the year with $21,000 of inventory. Baker will report cost of goods sold equal to:

$99,500.
$131,000.
$120,500.
$110,000.

4. Inventory records for Dunbar Incorporated revealed the following:

Date Transaction Number of Units Unit Cost

Apr. 1 Beginning inventory 530 $2.33

Apr. 20 Purchase 390 2.54

Dunbar sold 670 units of inventory during the month. Cost of goods sold assuming LIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):

$1,561.
$1,591.
$1,643.
$1,317.

5. DW has an ending retained earnings balance of $52,800. If during the year DW paid dividends of $4,200 and had net income of $22,100, then what was the beginning retained earnings balance?