1. If you sell $100,000 0n account how much does your cash change?

2. If you sell $200,000 on account what happens to your revenue?

3. Your cash is $200,000 and your receivables are $50,000 your revenue for the period is $150,000 and your customer pays his/her receivable of $50,000 what is your revenue.

4.Same as above (#3) what is your cash.

5 When doing a Bank Rec you balance the bank to your ____________-

7.What is met by allowance for bad receivables.

8. Allowance for bad receivables is a _______ asset on your balance sheet.

9. American Pj Company is the largest wholesale PJ company in the USA. It purchases Pj from many manufacturers in the world. It began February of 2020 25,000,000 pairs of PJs at a cost of $7 each.

On February 4 it bought 75,000,000 pair at $7.10 each. On February 12 it bought 1,000,000 pairs at $6.90. on February 18 50,000,000 pairs at 7.20 and on February 23 a manufacturer was going out of business and it got a deal on 25,000,000 pairs for $6.00. In February it sold $100,000,000 pairs to Walmart at $8, and 50,000,000 to Target.

What is its cost of goods sold using FIFO LIFO and average cost methods? Also what is its inventory on March 1 2020 using all three methods.

10. To calculate allowance for bad receivables you can use the 3 methods percent of sale, ________________ and ________________.

11.

Jones Garment Company had sales for 2019 of $32,500,000 it sells everything on credit to retailors.

On 12/31/20 they had accounts receivables $5,500,000. And had $20,000 in its allowance for account losses. Jones wants to reserve one tenth of a percent of sales in its allowance. (.001)

Same as above but they want reserve one half of a percent of receivables as an allowance (.005)

The Company hires a new controller and she decides to us the aging method.

The above receivables are aged as following $3,000,000 zero to 30 days reserve a quarter of a percent 0025

$2,000,000 30-60 reserve .75% .0075

$500,000 60-90 reserve 2% .02