[sagnik2422]

Prime Corp has ending balance in A/R of $100,000. Prime recorded bad debt expense of $3000. Prime has ending balance in allowance for uncollectible accounts of $7000. What is NRV of A/R?

Answer was $93,000 but I don't get the logic as to why

I know 100,000 - 7000 = 93,000 but then what's the 3000 for?

[sagnik2422]

Hi I need some help as to the logic of the answer to this question, please explain with steps:

During prior year, Marian Company recognized impairment loss of $10,000 on its notes receivables. No other losses were recognized on these receivables. During current year estimated future cash flows improved by $11,000. During current year, Marian company can recognize gain of ?

Answer was $10,000 but I don't get why

[hkstroud]

Could it be that the $3000 bad debt expense is part of the total $7000 uncollectible account? Seems logical to me. You can't collect a bad debt.

[rehmanvohra]

When allowance method is used the bad debts written of are debited to allowance account and credit ted receivables and that is where 3,000 will appear.

[rehmanvohra]

Prudence concept is applied here. You can realize only what you have already charged as a loss. The extra 1,000 is a future possible gain which must be ignored until realised.

[Fidget1]

That's my thinking as well, or in other words, the $3k bad debt has already been accounted for in arriving at the y/e balances of £100k receivables and £7k provision.

[rehmanvohra]

That's my thinking as well, or in other words, the $3k bad debt has already been accounted for in arriving at the y/e balances of £100k receivables and £7k provision.

You are right. The question says that Accounts Receivables has an ENDING BALANCE which means it is after adjusting bad debts.

[sagnik2422]

Please show how to solve with steps
Askew Company uses a periodic inventory system. The June 30, 2013, year-end trial balance for the company contained the following information:

Account Debit Credit
Merchandise inventory, 7/1/12 32,000
Sales 380,000
Sales returns 12,000
Purchases 240,000
Purchase discounts 6,000
Purchase returns 10,000
Freight-in 17,000

In addition, you determine that the June 30, 2013, inventory balance is $40,000.

Required:
1.
Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2013.
I know Beg Inventory + Purchases - Returns = COGS available for sale but don't know how to solve

[rehmanvohra]

Merchandise inventory, 7/1/12 32,000
Purchases 240,000
Purchase discounts (6,000)
Purchase returns (10,000)
Freight-in 17,000
Inventory balance (40,000).
Cost of goods sold 233,000

[sagnik2422]

Hi, I am really confused and need some help with steps, please also detail the steps with the financial calculator if possible:

Beginning three months from now, you want to be able to withdraw $1500 each quarter from your bank account to cover your college expenses over the next 4 years. The account pays 1.25 percent interest per quarter. How much do you need to have in your account today to meet your expense over next 4 years?

Answer was $21,630.44 but I don't get how/why.

My work : I got FV = 1500 N , wasn't sure if 48 or 9, I/Y: 1.25/12 ?

PMT = 0 ? PV = unknown

[sagnik2422]

2014 amortization was calculated as 1,180,000 divided by 9.5 and I don't get why,and where the 9.5 comes from :

On October 1, 2013, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.

[Fidget1]

Have you missed anything out of the question, such as the date the revaluation took place?

By the sounds of it, the revaluation took place 6 months after purchase, which would mean that the new amortisation charge would be over 9.5 years.

The difference between the purchase price and revalued amount looks a bit dodgy as well - the machine has been revalued upwards by over $1m when it only cost $115k.

[sagnik2422]

Hi I need some help with this I am confused:

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2009. Missing information has been left blank :
COGS : 95
Freight in : 5
Ending Inventory : 30
Gross Purchases : ?
Sales : ?
Purchase Discounts : 6
Beginning Inventory : 20
Gross Profit : 8
Purchase Returns : 12

I am totally blanking out please help with steps .

[sagnik2422]

Hi I am totally blanking out , I need help with steps :

COGS : ?
Freight In : 10
Ending Inventory : ?
Gross Purchases : 206
Sales : 200
Purchase Discounts : 15
Beginning Inventory : 60
Gross Profit : 54
Purchase Returns : 27

Thanks in advance

[sagnik2422]

I am getting stuck on these problems, please give a formula and show how to solve with steps :
Cost of Goods Sold : ?
Freight in : 14
Ending Inventory : 83
Gross Purchases : 270
Sales : 304
Purchase Discounts : 20
Beginning Inventory : 90
Gross Profit : ?
Purchase Returns : 30

Thanks so much

[sagnik2422]

This should be simple, but I'm forgetting the steps , all I remember is Beg Inv + Purchases = COGAS

COGS : 237
Freight In : 22
Ending Inventory : 147
Gross Purchases : 300
Sales : 400
Purchase Discounts : ?
Beginning Inventory : 150
Gross Profit : 163
Purchase Returns : 50
Answer was 38 but I don't get how

[sagnik2422]

I am stuck and need help :

The following information is taken from accounting records of Madeline Inc for the year 2009. Missing information has been left blank. Inventory is only supply that Madeline purchases on credit.

Required : Compute missing records :
Jan 1
A/P : ?
Jan 1
Inventory : 100
Dec 31
A/P : 62
Dec 31
Inventory : 85
Cash paid to inventory suppliers : 324
Cost of Goods sold : 365
Net Purchases : 350

Answer was 100 but I don't get how

[ma0641]

You have now listed 5 homework questions. We do not to your homework for you.

[sagnik2422]

It's review questions, I am trying to work hard and succeed OK?

[ma0641]

That may be but you can't expect the volunteers to do them for you. Specific parts of questions or hints may be offered.