Questions from Intermediate Accounting

Q: On July 1, Oura Corp. made a sale of $

On July 1, Oura Corp. made a sale of $450,000 to Stratus, Inc. on account. Terms of the sale were 2/10, n/30. Stratus makes payment on July 29. Oura uses the most-likely-amount method and assumes that...

Q: Gear Garage Inc. enters into a contract to provide services totaling

Gear Garage Inc. enters into a contract to provide services totaling $80,000. The contract includes a potential performance bonus based on when Gear Garage completes the services. Gear Garage estimate...

Q: Grotto Products, Inc. reported an opening balance in the allowance

Grotto Products, Inc. reported an opening balance in the allowance for doubtful accounts of $560,000. During the year, the company determined that a $23,000 receivable due from Zeer Company was uncoll...

Q: Vince Ventures Company reported an opening balance of $925,000

Vince Ventures Company reported an opening balance of $925,000 in its allowance for uncollectible accounts. Vince Ventures determined that a $57,500 account due from Ric Associates was uncollectible....

Q: Ciano Landscaping Company uses the allowance method to account for its uncollectible

Ciano Landscaping Company uses the allowance method to account for its uncollectible accounts. Three years ago, it wrote off a $40,000 account due from Haber Incorporated. Haber paid this account in f...

Q: Complete the following inventory disclosure: At the end of 2019 and

Complete the following inventory disclosure: At the end of 2019 and 2018, inventories were composed of:

Q: Using the information provided in BE10-9, determine whether there

Using the information provided in BE10-9, determine whether there is a LIFO liquidation. Data from BE10-9:

Q: Todgren Incorporated adopted the dollar-value LIFO method last year.

Todgren Incorporated adopted the dollar-value LIFO method last year. Last year’s ending inventory was $56,400 with a price index of 1.0. The ending inventory for the current year at year-end (FIFO) co...

Q: Using the information provided in BE10-11, prepare the journal

Using the information provided in BE10-11, prepare the journal entry required to adjust Todgren’s ending inventory from a FIFO to a dollar-value LIFO basis. Data from BE10-11: Todgren Incorporated ad...

Q: Count Clothing Company manufactures two types of raincoats—Regular and Stain

Count Clothing Company manufactures two types of raincoats—Regular and Stain Resistant. Information related to both products is presented in the following table. Determine the endin...