Step 1: Write out the Journal entries the dates above. Post the entries to the General Ledger (represented by T-Charts for each account). Assume HPU uses a perpetual inventory system and FIFO cost-method for inventory. Step 2: COGS and Inventory 1. If the shipping costs on 12/2 were FOB-shipping point instead, how would that have changed your journal entry? 2. If HPU used LIFO instead, how would that have changed your COGS and Ending Inventory Balances? 3. If HPU used Average Cost? Step 3: Allowance for Doubtful Accounts and Bad Debt Expense: 1. If HPU estimates that 5% of all credit sales will default, make the journal entry to record the BDE and ADA 2. If HPU used the Aging Method instead - use the A/R aging below to calculate the ending ADA balance and BDE. A/R Aging on 12/31/2019 Age Amount 0-30 days 243,750 31-60 days 118,000 0.03 61-90 days 105,650 91+days 97,650 0.3 Default rate 0.01 0.1 3. If HPU did not use an allowance method and instead used the Direct Write-off Method, deciding that $40,000 of receivables needed to be written off. Step 3: Prepare a Bank Reconciliation using the following information: Bank Statement and Reconciliation Info Bank Balance 11/30/2019: 103,350 Checks cleared: (11,250) Deposits cleared: 628,750 Debit Memo: (13,397) Bank Service Fee: (450) Bank Balance 12/31/2019: 707,003 Outstanding Checks: Deposits in Transit: 267,000 238,875 Dashboard :: Calendar = TO DO Notifications Inbox Cash House Parties Unlimited is a merchandising company that sells karaoke machines. Trial Balance 12/1/2019 $ 92,100 Notes Receivable 10,000 Accounts Receivable 331,300 Accounts Payable 17,600 Inventory 567,850 Common Stock 500,000 Allowance for Doubtful (14,954) Retained Eamings (12/31/18) 468,696 Accounts During December, 2019 the following transactions occurred: 12/2/19 - HPU purchased 1,600 units (karaoke machines) for $167/unit on credit. The invoice showed $159 of shipping costs, shipped FOB-destination. 12/5/19 - HPU sold 2,500 units for $250/unit to Walmart on credit. Payment terms are 2/10, n/30. HPU uses the Net Method of recording receivables, and expects Walmart to take the discount. 12/13/19 - HPU receives a check from Walmart for $306,250 for half of the sale made on 12/5. 12/17/19 - HPU purchased 1,000 units for $177/unit on credit. 12/19/19 - HPU received a check for $10,000 for receivables previously recorded. 12/21/19 - HPU sold 1,950 units for $250/unit to Target on credit. Payment terms are 2/10, n/30. HPU expects that Target will not take the discount. Record the transaction using the Gross Method. 12/28/19 - HPU receives a check for $312,500 for the remaining balance owed from Walmart's transaction on 12/5. 12/29/19 - HPU wrote and mailed a check for the purchases of inventory on 12/2 for $267,000. 12/30/19 - HPU received a check for $238,875 from Target for the sale on 12/21. 12/31/19 - HPU's note receivable was issued on 12/1/2019 and has a maturity date of 2/28/2019. The note carries an interest rate of 5%. Record the required adjustment for interest as of 12/31. alantuina the data abaura Dont Stan 1. Wito at the La.. Dashboard Calendar E To Do Notifications inbox Step 1: Write out the Journal entries the dates above. Post the entries to the General Ledger (represented by T-Charts for each account). Assume HPU uses a perpetual inventory system and FIFO cost-method for inventory. Step 2: COGS and Inventory 1. If the shipping costs on 12/2 were FOB-shipping point instead, how would that have changed your journal entry? 2. If HPU used LIFO instead, how would that have changed your COGS and Ending Inventory Balances? 3. If HPU used Average Cost? Step 3: Allowance for Doubtful Accounts and Bad Debt Expense: 1. If HPU estimates that 5% of all credit sales will default, make the journal entry to record the BDE and ADA 2. If HPU used the Aging Method instead - use the A/R aging below to calculate the ending ADA balance and BDE. A/R Aging on 12/31/2019 Age Amount 0-30 days 243,750 31-60 days 118,000 0.03 61-90 days 105,650 91+days 97,650 0.3 Default rate 0.01 0.1 3. If HPU did not use an allowance method and instead used the Direct Write-off Method, deciding that $40,000 of receivables needed to be written off. Step 3: Prepare a Bank Reconciliation using the following information: Bank Statement and Reconciliation Info Bank Balance 11/30/2019: 103,350 Checks cleared: (11,250) Deposits cleared: 628,750 Debit Memo: (13,397) Bank Service Fee: (450) Bank Balance 12/31/2019: 707,003 Outstanding Checks: Deposits in Transit: 267,000 238,875 Dashboard :: Calendar = TO DO Notifications Inbox Cash House Parties Unlimited is a merchandising company that sells karaoke machines. Trial Balance 12/1/2019 $ 92,100 Notes Receivable 10,000 Accounts Receivable 331,300 Accounts Payable 17,600 Inventory 567,850 Common Stock 500,000 Allowance for Doubtful (14,954) Retained Eamings (12/31/18) 468,696 Accounts During December, 2019 the following transactions occurred: 12/2/19 - HPU purchased 1,600 units (karaoke machines) for $167/unit on credit. The invoice showed $159 of shipping costs, shipped FOB-destination. 12/5/19 - HPU sold 2,500 units for $250/unit to Walmart on credit. Payment terms are 2/10, n/30. HPU uses the Net Method of recording receivables, and expects Walmart to take the discount. 12/13/19 - HPU receives a check from Walmart for $306,250 for half of the sale made on 12/5. 12/17/19 - HPU purchased 1,000 units for $177/unit on credit. 12/19/19 - HPU received a check for $10,000 for receivables previously recorded. 12/21/19 - HPU sold 1,950 units for $250/unit to Target on credit. Payment terms are 2/10, n/30. HPU expects that Target will not take the discount. Record the transaction using the Gross Method. 12/28/19 - HPU receives a check for $312,500 for the remaining balance owed from Walmart's transaction on 12/5. 12/29/19 - HPU wrote and mailed a check for the purchases of inventory on 12/2 for $267,000. 12/30/19 - HPU received a check for $238,875 from Target for the sale on 12/21. 12/31/19 - HPU's note receivable was issued on 12/1/2019 and has a maturity date of 2/28/2019. The note carries an interest rate of 5%. Record the required adjustment for interest as of 12/31. alantuina the data abaura Dont Stan 1. Wito at the La.. Dashboard Calendar E To Do Notifications inbox