1. XYZ Co. provides the following information regarding Accounts Receivable during 2020:

Net credit sales during 2020 $650,000

AR 12/31/20 $275,000

Allow. For doubtful account (credit) 12/31/20 unadjusted $15,000

Assume xyz uses the balance sheet approach to estimated bad debt and based on historical data, determine that 8% of accounts will be uncollectable. What is xyzs 2020 bad debt expense? _____ (7)

2. Pollette Co. provides the following information regarding Accounts Receivable during 2020:

Net credit sales during 2020 $650,000

AR 12/31/20 $275,000

Allow. For doubtful account (credit) 12/31/20 unadjusted $15,000

Assume pollette uses the balance sheet approach to estimated bad debt and based on historical data, determine that 12% of accounts will be uncollectable. What is pollettes net realization value of AR on their 2020 balance sheet? _____ (8)

3. At December 31, the Orange Company has ending inventory under LIFO of $752,000. Assume the company uses the perpetual inventory system. The current replacement cost of the inventory is $710,000. The net realizable value is $695,000. The normal profit on this inventory is $20,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $890,000. Following U.S. GAAP, what is the loss to adjust inventory to its lower of cost or market?

5. Alter Co. purchased a piece of machinery of March 1, 2020, for $1,800,000. The machine is expected to have a useful life of 15 years, and Alter estimates it will be able to sell the machine at the end of its useful life for $50,000. Alter depreciates the machinery from its date of acquisition. Alter sold the machine on 4/1/21 for $1,400,000. Assuming Alter uses straight-line depreciation, what amount should the company report as a gain (loss) related to this sale?

6. ABC Co. began operations in 2020. ABC uses the FIFO cost flow assumption. ABC Co. had the following transactions related to inventory. What is ABC Co.s cost of goods sold in 2020? ___ (31)

2/15 purchase 3000 units of inv at $5/unit

3/1 sells 600 units of inv for $16/unit, customer pays on account

7/1 sells 200 units of inv for $20 per unit, customer pays on account

7. ABC Co. began operations in 2020. ABC Co. had the following transactions related to property, plant and equipment. What amount is reported on ABCs 2020 Balance Sheet related to property, plant, and equipment, assuming ABC depreciates beginning with the month of acquisition? ABC uses straight-line depreciation.

6/1 purchases equipment for $60,000 on account, 6-year useful life, $7000 salvage value. It cost ABC $10,000 to have the equipment shipped to its plant. __ (32)

8. ABC Co. began operations in 2020. ABC Co. had the following inventory and sales transaction, all on account. What is the journal entry related to the 3/1 sale of inventory? ___ (33)

2/15 purchase 2000 units of inv at $4/unit

3/1 sells 500 units of inv for $16/unit, customer pays on account

7/1 sells 100 units of inv for $20 per unit, customer pays on account

9. In 2016, Fox Corporation acquired production machinery at a cost of $600,000 which now has a book value of $350,000. The sum of undiscounted cash flows from use of the machinery is $280,000, and the sum of its discounted future cash flows is $ 260,000. The machines fair value is $240,000. What amount should Fox recognize as a loss on impairment?

10. Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $36,000 and a fair value of $42,000. The asset given up by Armstrong Co. has a book value of $60,000 and a fair value of $57,000. Boot of $15,000 is received by Armstrong Co. What amount should Glen Inc. record for the asset received?

11. Wren Inc. and Beestrong Co. have an exchange with no commercial substance. The asset given up by Wren Inc. has a book value of $36,000 and a fair value of $42,000. The asset given up by Beestrong Co. has a book value of $60,000 and a fair value of $57,000. Boot of $15,000 is received by Beestrong Co. What amount should Beestrong Inc. record for the asset received?

12. Fox Co. successfully completed the sale of its Owl division in April 2020 that it decided to discontinue operations in July 2019.

From January 2020 through the date of the sale, the Owl division generated a $200,000 operating profit. The Owl division was sold at a pre-tax loss of $500,000. Fox Co. has pre-taxed profit from all operations in 2020 of $1,500,000.

What is Fox Cos Income from Discontinued operations reported on its income statement in 2020?

Foxs Cos income tax rate is 20%. (50)

13. Lime key corporations trial balance for December 31, the end of its fiscal year, included the following accounts:

Account receivable 25,000

Inventory 55,000

Copyright 16,000

Allowance for doubtful accounts 7000

Notes receivable, due in 2 years 41,000

Investments in treasury bills 6000

Prepaid insurance 12,000

Cash In bank 13,500

Investment are treasury bills that were purchased in November and mature on January 15. Prepaid insurance is a one-year policy that was purchased on December 31.

14. Following information:

Admin expense 231

Cost of good sold 263

Gain on sale of securities 41

Income tax expense 57

Loss on discontinued operation after tax 38

Loss on disposal of equipment 86

Revenue 865

Selling expense 124

What Is the amount of income from continuing operations for Tuche Millinery?