ACC 305 Week 4 Quiz | Assignment Help | Ashford University
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- 26 Sep 2018
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ACC 305 Week 4 Quiz | Assignment Help | Ashford University
Q.1
FamousFamous
Stores reports the
following transactions related to inventory.
FamousFamous
sells all products at
$ 15$15
each.
(Click
the icon to view
the information.)
What is
FamousFamous's
cost of goods sold and
ending inventory for the current year using the FIFO method under a
perpetual system? (When entering the layers for the units sold, enter the first
layer sold under FIFO on the first available line, then the next layer
sold under FIFO on the next line, and so on. CGS = Cost of
Goods Sold.)
Transaction
Units Purchased
Unit Cost
Units Sold
Total Cost
Beginning inventory - 1/1
1,500
$2.50
$3,750
Purchase - 3/30
6,500
3.50
22,750
Purchase - 4/16
4,600
4.20
19,320
Sale - 5/11
1,800
Purchase - 6/13
2,400
4.90
11,760
Sale - 7/1
3,000
Purchase - 10/5
2,800
5.10
14,280
Q.2
PachecPachec
Printers established a
$ 1 comma 195$1,195
imprest fund at the
beginning of the year. The fund custodian holds the cash to pay minor
expenditures. During the year, the following expenditures were paid from
the petty cash fund:
LOADING...
(Click
the icon to view
the expenditures.)
At the end of
the year, there was
$ 25$25
remaining in the fund.
The custodian took the petty cash receipts totaling
$ 1 comma 160$1,160
to the controller,
requesting reimbursement. Prepare the journal entries to record the
current year's activity in the petty cash fund.
Postage
$570
Parking and Tolls
290
Supplies
300
Total petty cash receipts
$1,160
Q.3
On November 30,
Year 1, Derin Corporation agreed with its customers to change their
accounts receivable to notes receivable in order to allow a longer payment
period. The terms of the notes receivable are principal is due on
November 30, Year 4 and interest payments are due annually on November 30
until November 30, Year 4. Derin's customer has made all required
payments to date. How should the notes receivable and accrued interest be
classified on the balance sheet as of June 30, Year 3?
Q.4
PacificPacific
Corporation provides the
following information regarding accounts receivable during
20152015.
LOADING...
(Click
the icon to view the
information regarding accounts receivable.)
Pacific'sPacific's
policy is to record bad
debt expense at
4 %4%
of net credit sales. What
is the journal entry to record the bad debt expense for
20152015?
What is the NRV of
accounts receivable at the end of the year?
Q.5
On
JuneJune
1,
TuellTuell
Foot Outfitters,
Inc. bought
7070
pairs of hiking boots for
$ 150$150
per pair from a vendor on
account with terms of
44/10,
n/30.
TuellTuell
Foot paid for
3838
pairs of the boots on
JuneJune
9 and paid for the
remaining
3232
pairs on
JuneJune
29. Provide the necessary
journal entries for
TuellTuell
Foot to record these
transactions under both the gross and net methods.
TuellTuell
Foot uses the perpetual
inventory system.
Q.6
RMMRMM,
Inc. factors
$ 484 comma 000$484,000
of its accounts
receivable to
Upper MM&Upper CC
Lawrence Factors without
recourse. The transaction qualifies as a sale.
Upper MM&Upper CC
Lawrence charges a fee
equal to
9 %9%
of the receivables
factored and holds back an additional
6 %6%
as security.
Upper MM&Upper CC
Lawrence Factors will
return the hold back to
RMMRMM
in full when it collects
the receivables. What is
RMMRMM
Inc.'s journal entry to
record the transaction? (Record debits first, then credits. Exclude explanations from any
journal entries.)
Q.7
Simmons, Inc.
uses lower-of-cost-or-market to value its inventory. Data regarding an
item in its inventory is as follows:
|
Cost |
$26 |
|
Replacement cost |
20 |
|
Selling price |
30 |
|
Cost of completion and disposal |
2 |
|
Normal profit margin |
7 |
What is
the lower-of-cost-or-market for this item?
Q.8
Stanberry Company
sold $500,000 of net accounts receivable to Cork Company for $450,000.
The receivables were sold outright on a without recourse basis, and
Stanberry Company retained no control over the receivables.
The journal entries to
record the sale would be which of the following?
Q.9
Udder
Clothing Wholesalers, Inc. provided you with the following information
regarding inventory as of
DecemberDecember
31,
20152015:
(Click
the icon to view the inventory information.)
(Click
the icon to view the abbreviation definitions.)
Assume that
UdderUdder
uses the individual item approach for computing the
necessary lower-of-cost-or-market rule adjustment.
Q. 10
The Loyd Company had 150 units of product Omega
on hand at December 1,
Year 1, costing $400 each. Purchases of
product Omega during December were as follows
|
Date |
Units |
Unit Cost |
|
December 7 |
100 |
$440 |
|
December 14 |
200 |
$460 |
|
December 29 |
300 |
$500 |
Sales during December were 500 units on December 30.
Assume a perpetual inventory system is used. The cost of inventory at
December 31, Year 1 under the FIFO method would be closest to:
USA 
India