A) The following selected account balance were taken from Buckeye Company?s general ledger at January 1, 2021 and December 31, 2021:

For 2021, Buckeye Company had an inventory turnover ratio of 11 and an average collection period of 18.25 days.

Calculate the amount of gross profit earned by Buckeye Company in 2021.

B) Johnson Company employs a periodic inventory system and sells its inventory to customers for $24 per unit. Johnson Company had the following inventory information available for the month of March:

March 1: Beginning inventory 1,700 units @ $17 cost per unit.

March 7: Sold 600 units.

March 11: Purchased 2,200 units @ $11 cost per unit.

March 19: Sold 2,900 units.

March 24: Purchased 1,300 units @ $21 cost per unit.

March 28: Sold 1,100 units.

March 29: Purchased 2,600 units @ $14 cost per unit

During March, Johnson Company reported operating expenses of 14,000 and had an income tax rate of 34%.

Calculate the amount of net income reported on Johnson Company's income statement for March using the LIFO method.

C) At January 1, 2022, Betty DeRose Inc. had an allowance for bad debts with an $11, 980 credit balance. Betty recorded bad debt expense of $33,900 for 2022. At December 31, 2022, Betty prepared the following aging schedule:

Calculate the amount of accounts receivable Betty wrote-of as uncollectible during 2022.

Transcribed Image Text:

Accounts receivable Inventory January 1, 2021 68,000 53,000 December 31, 2021 44,000 91,000 Accounts Receivable not past due 1-30 days past due 31-60 days past due 61-90 days past due over 90 days past due $165,000 67,000 52,000 19,000 11,000 % Uncollectible 2% 8% 12% 25% 60% Accounts receivable Inventory January 1, 2021 68,000 53,000 December 31, 2021 44,000 91,000 Accounts Receivable not past due 1-30 days past due 31-60 days past due 61-90 days past due over 90 days past due $165,000 67,000 52,000 19,000 11,000 % Uncollectible 2% 8% 12% 25% 60%

Answer rating: 100% (QA)

A Average inventory 53000 91000 2 72000 Average Accounts receivable 68000 44000 2 56000 Inventory tu... View the full answer