The following data were taken from BKG Inc.


Cost of Goods Sold $432,000

Inventory, end of the year 67,000

Inventory, beginning of the year 82,000


Required:

a. Calculate the inventory turnover ratio.
b. Calculate the number of days' sales in inventory.

The following inventory information is available for Miami Lakes Company:


Units Unit Cost Total Cost

Beginning inventory 20 $ 16 $ 320

June 9 purchase 100 20 2,000

June 16 sale 115

June 20 purchase 100 24 2,400

June 25 sale 90


Required:

Assuming the company uses the periodic inventory method; calculate cost of goods sold and ending inventory under (a) LIFO and, (b) FIFO, (c) Average Cost.


Cost of Goods Sold Ending Inventory

LIFO $_______________ $______________


FIFO $_______________ $_______________


Average Cost $_______________ $_______________

The following inventory information is available for Miami Lakes Company:


Units Unit Cost Total Cost

Beginning inventory 20 $ 16 $ 320

June 9 purchase 100 20 2,000

June 16 sale 115

June 20 purchase 100 24 2,400

June 25 sale 90


Required:

Assuming the company uses the perpetual inventory method; calculate cost of goods sold and ending inventory under (a) LIFO and, (b) FIFO, (c) Average Cost.


Cost of Goods Sold Ending Inventory

LIFO $_______________ $______________


FIFO $_______________ $_______________

On December 31, 2007, Highlife Company's total accounts receivable was $ 57,800. A summary of the December 31, 2007, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:


Age Group Amount % Uncollectible

0- 60 days $ 40,000 1%

61- 90 days 15,000 2%

91- 120 days 2,000 15%

Over 120 days 800 80%


The allowance for uncollectible account had a balance of $ 1,100 at January 1, 2007. During the year, $ 1,050 of accounts were written off.


Required:

a. What was Highlife Company's bad debt expense for 2007?
b. What was the net realizable value of Highlife Company's Accounts Receivable on its December 31, 2007 Balance Sheet?

The cash account for JKL Co. on March 31, 2008 indicated a balance of $ 16,450.00. The March bank statement indicated an ending balance of $ 18,345.00. Comparing the bank statement, the canceled checks, and the accompanying memorandums with the records revealed the following reconciling items:


Checks outstanding totaled $ 3,620.00
A deposit of & 4,496.00 had been made too late to appear on the bank statement.
A check for $ 1,233.00 returned with the statement had been incorrectly recorded as $ 233.00. The check was originally credited to accounts payable.
The bank collected $ 4,541.00 on a note left for collection.
Bank service charges for March amounted to $ 25.00.
A check for $ 745.00 was returned by the bank because of insufficient funds.


Required:

a. Prepare a bank reconciliation as of March 31, 2008.
b. Prepare the necessary journal entries based upon your reconciliation.

So you copy/paste your homework and expect people to do it for you?

Which inventory cost method is appropriate for a business who has a small quantity of uniquely different items in inventory with a relatively high cost per items?
a. LIFO
B. FIFO
c. Average cost
d. specific identification

During aperiod of consistently rising prices, the method of inventory that will result in reporting the greastest cost of merchandise sold is:
a. FIFO
b. LIFO
c. Average cost
d. Weighted average

Journal entries based on the bank reconciliation are required in the depositor's accounts for:
a. outstanding checks
b. deposits in transit
c. bank errors
d. book errors

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Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?
a. bank service charges
b. deposits in transit
c. NSF checks
d. a check for $520, recorded in the check register for $250

On November 1, Blazer Co. receives a 6% interest bearing note from Ram Company to settle a $20,000 account receivable. The note is due in 6 months. At Dec. 31, Blazer should record interest revenue of:
a. $ 0
b. $ 100
c. $ 200
d. $ 600

One of the weaknesses of the dirrect write-off method is that it:
a. understates accounts receivable on the balance sheet
b. violates the matching principle
c. is too difficult to use for many companies
d, is based on estimates

The receivable that is usually evidenced by a formal instrument of credit and calls for the payment of interest is a(n):
a. employee receivable
b. note receivable
c. accounts receivable
d. income tax receivable

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