Q: Presented below are two independent situations. Instructions a
Presented below are two independent situations. Instructions a. On January 6, Brumbaugh Co. sells merchandise on account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16, Pryor Inc. pays the...
See AnswerQ: The ledger of Costello Company at the end of the current year
The ledger of Costello Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000. Instructions a. If Costello uses th...
See AnswerQ: Godfreid Company has accounts receivable of $95,400 at March
Godfreid Company has accounts receivable of $95,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adju...
See AnswerQ: At December 31, 2019, Blanda Company had a credit balance
At December 31, 2019, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wrote off accounts totaling $11,000. One of those accounts ($1,800) was lat...
See AnswerQ: On December 31, 2020, Ling Co. estimated that 2
On December 31, 2020, Ling Co. estimated that 2% of its net accounts receivable of $450,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Account...
See AnswerQ: Presented below are two independent situations. Instructions a
Presented below are two independent situations. Instructions a. On March 3, Kitselman Appliances sells $650,000 of its receivables to Ervay Factors Inc. Ervay Factors assesses a fi nance charge of 3%...
See AnswerQ: The following expenditures relating to plant assets were made by Prather Company
The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. 1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $200 insura...
See AnswerQ: Pryce Company owns equipment that cost $65,000 when purchased
Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2017. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated use...
See AnswerQ: In a period of rising prices, the inventory reported in Bert
In a period of rising prices, the inventory reported in Bert Company’s balance sheet is close to the current cost of the inventory, whereas Ernie Company’s inventory is considerably below its current...
See AnswerQ: On July 1, 2020, Friedman Inc. invested $720
On July 1, 2020, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2020, 100,000 tons of ore were mined. Instructions a. Pr...
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