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The company sold $900,000 of products on account [The product cost was $600,000}. It subsequently collected 90% of the amount owed by customers, The company

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The company sold $900,000 of products on account [The product cost was $600,000}. It subsequently collected 90% of the amount owed by customers, The company paid the account payable balance in January 20x2 and 50% of the accrued expenses The company incurred and paid the following expenses during the year Rent $10,000; Salaries and payroll related taxes $40,000; Administrative $20,000 The company depreciates assets using the straight-line method. It assumes a 10-year useful life with no salvage value The investments are classied as trading securities and the value shown on the balance sheet is at cost. However, the market value declined to $180,000 in 20x2 The company conducts an inventory count at year end and the count showed $50,000 worth of inventory in the warehouse. The company accrued the following items at December 31, 20x2: - an invoice from the attorney for $5,000; unpaid payroll and related cost for $6,000, The notes were issued on 12f31fx1 with a 5% coupon rate and a fiveyear maturity date. The rst interest payment is due on 1f1fx3 The company uses the allowance method for uncollected accounts and expects that 2% of the accounts receivable balance is uncollectible The company accrues income taxes at year end using a 10% effective tax rate

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