Problem 1: Use the information below to answer the next 6 questions.

Calculate COGS and Ending Inventory balances using the following methods: Show work to receive full point value.

1. FIFO Periodic
2. FIFO Perpetual
3. LIFO Periodic
4. LIFO Perpetual
5. Weighted Average

Problem 2: Assume that a company had beginning inventory of $780,000, ending inventory of $350,000 during the year. During the year the company had sales of $1,250,000 and gross margin is 42%. Calculate:

1. Purchases:
2. COGS:
3. Goods Available for sale:
4. Gross Profit:

Problem 3: Mountain Company buys merchandise on account from Wood Company. The selling price of the goods is $900 and the cost of the goods sold is $630. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies.

Problem 4: Madison uses the allowance method to value its accounts receivable and is making the annual adjustments at fiscal year-end, November 30. The proportion of uncollectible accounts is estimated based on past experience, which indicates 1.5% of net credit sales will be uncollectible. Total sales for the year were $2,000,000 of which $200,000 were cash transactions. Madison has determined that the Norris Corporation AR balance of $10,000 is uncollectible and will write off this account before year-end adjustments are made. Listed below are Madisons account balances at November 30 prior to any adjustments and the $10,000 write-off.

As a result of the November 30 adjusted entry to provide for bad debts, the allowance for doubtful accounts will increase (decrease) by what amount?

Problem 5: As a result of the November 30 adjusted entry to provide for bad debts, the allowance for doubtful accounts will increase (decrease) by what amount?

Wren is considering the following methods of estimating doubtful accounts expense for the year:

• Based on credit sales at 2%
• Based on AR at 5%

What amount should Wren charge to doubtful accounts expense under each method?

Problem 6: Presented here are the components in Tyler Companys income statement. Determine the missing amounts. Points 5

Cost PU $17.00 33.25 Units 29,357 28,500 42,800 32,600 8,000 128,120 257,000 300,000 28,500 458,902 258,952 189,823 Beginning Inventory 2-lan Sale 5-an Purchase 9-Jan Sale 11-Jan Sale 17-lan Purchase 23-Jan Purchase 25-Jan Sale 26-Jan Sale 28-Jan Purchase 29-Jan Sale 31-Jan Sale 27.52 32.37 Sales Accounts Receivable Sales Discounts Allowance for doubtful accounts Sales returns and allowance Bad debt expense $2,000,000 750,000 125,000 16,500 175,000 Accounts Receivable Credit Sales Allowance for doubtful accounts(before any provisions for doubtful account expense): 900,000 1,750,000 16,000 COGS Operating Expenses Sales $71,200 b $100,000 Gross Profit $30,000 Net Income $10,800 $29,500 $70,000 $71,900 $109,600 $46,200