1. Clean Sweep Ltd. manufactures several different brands of vacuum cleaners, from hand-held models to built-in central vacuums. It sells its products to distributors on credit, giving customers 30 days to pay. During the year ending June 30, 2020, Clean Sweep recorded sales of $1,554,000. At June 30, the company prepared the following aging schedule:

The Allowance for Doubtful Accounts had a credit balance of $20,800 before the year-end adjustment was made. Prepare the adjusting entry to bring Allowance for Doubtful Accounts to the desired level. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2. The following information relates to Glassworks Ltd.s inventory transactions during the month of July.

All of the units sold were priced at $20 per unit.

Glassworks Ltd. uses the perpetual inventory system. Calculate Glassworks cost of goods sold, gross margin, and ending inventory for the month of July using: i. FIFO ii. weighted-average (Round calculations for cost per unit to 4 decimal places, e.g. 10.5219 and final answers to 0 decimal places, e.g. 61,052.)

Which of the cost formulas would produce the higher gross margin?

Receivable Amount $156,000 51,000 72,000 103,000 Number of Days Outstanding Less than 31 31 to 45 46 to 90 More than 90 Estimated Percentage Uncollectible 2% 6% 14% 22% Account Titles and Explanation Debit Credit Cost/Unit $12.00 $13.00 Amount $46,800 79,300 July 1 4. 8 14 22 28 Beginning inventory Purchase Sale Sale Purchase Sale Units 3,900 6,100 5,700 1,700 4,580 3,680 $13.10 59,998 Cost of Goods Sold Gross Margin Ending Inventory $ $ $ $ i. FIFO Weighted- average $ $ $ ii. The produces the higher gross margin