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PART A As an employee of Dunks Company, you are provided with the following information: A a Sales on credit for the year amounted to $2,500,000. An aging schedule shows the following totals: It is estimated that the following percentage of accounts receivable balances wil1 be uncollectible: It is assessed that 3 percent of all credit sales during the year will be uncollectible. Required: a. Assuming that Dunks Company uses the aging analysis method, determine the balance required in the Allowance for Doubtful Accounts. (4 marks) b. Prepare a journal entry to adjust the balance in the Allowance for Doubtful Accounts. (2 marks) c. Assuming that Dunks Company uses the percentage-of-sales method instead of the aging method, calculate the balance in the Allowance for Doubtful Accounts as of December 31 and prepare the required entry. (3 marks) d. Prepare the journal entry to write off the account of Joe Applebee, who owes the company $1,200. (2 marks) PART B Peaches Ltd.'s record of transactions for the month of April was as follows: Required: a. Assuming that the perpetual system is used, compute the inventory and Cost of Goods Sold at April 30 using FIFO. (4 marks) b. Assuming that the perpetual system is used, compute the inventory at April 30 using the weighted-average cost. (5 marks) PART A As an employee of Dunks Company, you are provided with the following information: A a. Sales on credit for the year amounted to $2,500,000. An aging schedule shows the following totals: It is estimated that the following percentage of accounts receivable balances wil1 be uncollectible: It is assessed that 3 percent of all credit sales during the year will be uncollectible. Required: a. Assuming that Dunks Company uses the aging analysis method, determine the balance required in the Allowance for Doubtful Accounts. (4 marks) b. Prepare a journal entry to adjust the balance in the Allowance for Doubtful Accounts. (2 marks) c. Assuming that Dunks Company uses the percentage-of-sales method instead of the aging method, calculate the balance in the Allowance for Doubtful Accounts as of December 31 and prepare the required entry. (3 marks) d. Prepare the journal entry to write off the account of Joe Applebee, who owes the company $1,200. (2 marks) PART B Peaches Ltd.'s record of transactions for the month of April was as follows: Required: a. Assuming that the perpetual system is used, compute the inventory and Cost of Goods Sold at April 30 using FIFO. (4 marks) b. Assuming that the perpetual system is used, compute the inventory at April 30 using the weighted-average cost. (5 marks) PART A As an employee of Dunks Company, you are provided with the following information: A a Sales on credit for the year amounted to $2,500,000. An aging schedule shows the following totals: It is estimated that the following percentage of accounts receivable balances wil1 be uncollectible: It is assessed that 3 percent of all credit sales during the year will be uncollectible. Required: a. Assuming that Dunks Company uses the aging analysis method, determine the balance required in the Allowance for Doubtful Accounts. (4 marks) b. Prepare a journal entry to adjust the balance in the Allowance for Doubtful Accounts. (2 marks) c. Assuming that Dunks Company uses the percentage-of-sales method instead of the aging method, calculate the balance in the Allowance for Doubtful Accounts as of December 31 and prepare the required entry. (3 marks) d. Prepare the journal entry to write off the account of Joe Applebee, who owes the company $1,200. (2 marks) PART B Peaches Ltd.'s record of transactions for the month of April was as follows: Required: a. Assuming that the perpetual system is used, compute the inventory and Cost of Goods Sold at April 30 using FIFO. (4 marks) b. Assuming that the perpetual system is used, compute the inventory at April 30 using the weighted-average cost. (5 marks) PART A As an employee of Dunks Company, you are provided with the following information: A a. Sales on credit for the year amounted to $2,500,000. An aging schedule shows the following totals: It is estimated that the following percentage of accounts receivable balances wil1 be uncollectible: It is assessed that 3 percent of all credit sales during the year will be uncollectible. Required: a. Assuming that Dunks Company uses the aging analysis method, determine the balance required in the Allowance for Doubtful Accounts. (4 marks) b. Prepare a journal entry to adjust the balance in the Allowance for Doubtful Accounts. (2 marks) c. Assuming that Dunks Company uses the percentage-of-sales method instead of the aging method, calculate the balance in the Allowance for Doubtful Accounts as of December 31 and prepare the required entry. (3 marks) d. Prepare the journal entry to write off the account of Joe Applebee, who owes the company $1,200. (2 marks) PART B Peaches Ltd.'s record of transactions for the month of April was as follows: Required: a. Assuming that the perpetual system is used, compute the inventory and Cost of Goods Sold at April 30 using FIFO. (4 marks) b. Assuming that the perpetual system is used, compute the inventory at April 30 using the weighted-average cost
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