Question
1. Bert had accounts receivable of $340,000 and an allowance for doubtful accounts of $12,400 just before writing off as worthless an account receivable from
1. Bert had accounts receivable of $340,000 and an allowance for doubtful accounts of $12,400 just before writing off as worthless an account receivable from Ernie Company of $2,300. After writing off this receivable what would be the balance in Bert's Allowance for Doubtful Accounts?
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$12,400 credit balance.
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$10,100 credit balance.
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$10,100 debit balance.
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$14,700 credit balance.
2. On November 1, Year 1, Salem Corporation sold land priced at $300,000 in exchange for a 4%, six-month note receivable.
Salem's balance sheet at December 31, Year 1, includes which of the following as a result of the sale of land on November 1?
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Notes Receivable of $300,000 and Interest Receivable of $2,000.
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Notes Receivable of $306,000 and Interest Receivable of $2,000.
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Notes Receivable of $300,000 and Interest Receivable of $6,000.
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Notes Receivable of $300,000 only.
3. Castle TV, Incorporated purchased 2,500 monitors on January 5 at a per-unit cost of $203, and another 2,500 units on January 31 at a per-unit cost of $290. In the period from February 1 through year-end, the company sold 4,400 units of this product. At year-end, 600 units remained in inventory.
Assume that Castle TV, Incorporated uses the LIFO flow assumption. The cost of the 600 units in the year-end inventory is:
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$121,800.
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$295,800.
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$147,900.
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$174,000.
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