Widgetland is trying to decide between using a periodic and perpetual inventory system to account for the widgets that it sells. The following information is available. Assume the cost of each widget is consistent at $5.00 each, and the selling price is $11.50 (all cash sales): Widgets on hand, in inventory, at beginning of year: 5,000 Purchases for the year, on account: 100,000 Sold to customers during the year: 99,000 Widgets on hand, in inventory, at end of year: 5,500

1. Prepare the journal entries needed to record the transactions for widgets throughout the year assuming Widgetland uses a periodic inventory method. Prepare the income statement to gross profit (i.e. Sales minus COGS) assuming Widgetland uses a periodic inventory method.

Widgetland is trying to decide between using a periodic and perpetual inventory system to account for the widgets that it sells. The following information is available. Assume the cost of each widget is consistent at $5.00 each, and the selling price is $11.50 (all cash sales): Widgets on hand, in inventory, at beginning of year: 5,000 Purchases for the year, on account: 100,000 Sold to customers during the year: 99,000 Widgets on hand, in inventory, at end of year: 5,500

2. Prepare the journal entries needed to record the transactions throughout the year assuming Widgetland uses a perpetual inventory method. Prepare the income statement to gross profit (i.e. Sales minus COGS) assuming Widgetland uses a perpetual inventory method.

3. Ryster Corporation had the following balances on December 31, 2021 before any year end adjustments,: Accounts Receivable ..................................................................... $ 77,000 Allowance for Doubtful Accounts................................................. 5,000 credit Net Credit Sales............................................................................. 650,000

a. What is the journal entry to record the estimated uncollectible accounts assuming Ryster uses the percentage of receivables method? An aging of the accounts receivable estimated the collectible amount of the receivables at December 31, 2021 at $69,000.

b. On March 5, 2022, Ryster decided that a $1,400 receivable from a customer, Barker Company, was uncollectible. What is the journal entry to write off the account?

c. On July 1, 2022 Ryster receives a payment of $800 from Barker for the amount that had been previously written off on March 5, 2022. What is/are the required journal entry(ies)?

4. On November 1, 2022, Strynaster Corporation accepted a $9,000, 7-month, 8% note from a customer as payment of an outstanding account receivable. Strynasters year end is December 31.

a. What is the November 1 journal entry?

b. What entry is required at December 31, 2022, if any, related to the note?