[marieatt]

The following are account balances of the High Flying Company as of December 31, 2009 before any adjustments:

Account
Debit
Credit



Accounts Receivable
1,765,000

Allowance for Doubtful Accounts

93,700
Sales Revenue

9,000,000
Bad Debt Expense
0
0

It has been determined that it is very unlikely that the following Accounts Receivable accounts will be collected but no entries have yet been recorded to write off the accounts receivable balances:

ABC Company: $28,500
XYZ Company: $25,700
PDQ Company: $20,000

Analysis of historical balances indicates that approximately 1% of all sales is a reasonable estimate of uncollectable accounts under the percentage of sales method and 6% of accounts receivable is a reasonable estimate of uncollectable accounts under the percentage of receivables method.
 
Instructions:
 
1)Record the journal entries necessary to properly record 2009 bad debt expense for the High Flying Company under each of the following assumptions:

a.The company uses the percentage of sales method.

b.The company uses the percentage of receivables method.

2)Compute the net realizable value of accounts receivable before and after the write-off of the doubtful accounts and recording bad debt expense, under each of the following assumptions:
a.The company uses the percentage of sales method.

b.The company uses the percentage of receivables method.


I2-3:
Beginning inventory on March 1 consisted of 500 units each costing $5.
 
During March, the following was purchased for inventory:

Date
Purchase
March 5
1,000 units at a cost of $5.50 each
March 10
2,000 units at a cost of $5.25 each
March 14
2,500 units at a cost of $5.40 each
March 22
1,500 units at a cost of $5.50 each
March 28
3,000 units at a cost of $5.60 each

During March, the following was sold from inventory:

Date
Sales
March 3
400 units at a price of $8.50 each
March 12
1,400 units at a price of $8.25 each
March 17
2,800 units at a price of $8.40 each
March 21
600 units at a price of $8.75 each
March 25
1,900 units at a price of $9.00 each
March 31
2,900 units at a price of $8.80 each

Instructions:
 
Compute the cost of goods sold and the ending inventory value as of March 31 under each of the following assumptions:
 
1.Periodic Inventory Method

a)FIFO

b)LIFO

c)Weighted Average

2.Perpetual Inventory Method

a)FIFO

b)LIFO

c)Weighted Average

I2-4:

Information relating to the Middle Ground Company’s inventory as of December 31, 2011 includes:

1.Middle Ground uses the periodic inventory method.
2.On December 31, a physical count of inventory indicates that $453,500 of inventory was on hand.
3.Middle Ground shipped $25,000 of merchandise to the ABC Company on December 28, FOB shipping point. ABC actually received the shipment on January 4.
4.Middle Ground ordered $45,000 of merchandise from the XYZ Company on December 29, FOB destination. XYZ shipped the merchandise on December 31 and Middle Ground received the shipment on January 2.
5.Middle Ground ordered $22,000 of merchandise from the PDQ Company on December 31, FOB shipping point. PDQ shipped the merchandise on January 2 and Middle Ground received the shipping on January 5.
6.Middle Ground shipped $34,000 of merchandise to the RST Company on December 27, FOB destination. RST received the shipment on January 3.
7.Middle Ground ordered $12,000 of merchandise from the DEF Company on December 31, FOB shipping point. DEF shipped the merchandise on the same day and Middle ground received the shipment on January 2.
8.Middle Ground’s inventory count included $6,000 in merchandise it received from the KLM Company with the agreement that Middle Ground would try to sell it, keep 20% of the sales price, and remit the remainder the KLM. If it did not sell, it would be returned to KLM.
9.Middle Ground shipped $75,000 of merchandise on December 15 to the GHI Company. Prior to the shipment, Middle Ground agreed to repurchase the inventory on January 15 for $75,000 plus 6% and to pay all costs of shipping both ways.

Instructions:

1)Prepare a schedule in good form computing the correct ending inventory value for Middle Ground.

[marieatt]

Can someone please help with this?

[morgaine300]

First, be patient. We're all volunteers doing this around real lives. We're not on here 24/7 waiting for the next question to come in.

Second, please go read our guidelines for posting homework:
https://www.askmehelpdesk.com/financ...-b-u-font.html

You've got a LOT here. It seems an unrealistic expectation for someone to just start going through all this and not even have any idea what you have attempted, what you need, etc.

[marieatt]

morgaine300

I did not need all the smart comments. I know the rules and guidelines of posting homework. This post was supposed to be deleted, there is a post with the portions I completed. I understand no one is sitting around waiting and we all have real lives. If you want to be a help, be a help, no one needs your rude remarks and I will post this as an inappropriate post.

[morgaine300]

There was nothing "smart" in what I said - I was perfectly serious. And you need to explain how I am supposed to know that this post was supposed to be deleted? Or for that matter how I'm supposed to know you know the rules when they weren't followed. And posting again only an hour later isn't really showing that you know we're not on here 24/7, is it?

You entire post demonstrates that everything I said was completely legitimate.

Go ahead, report away.