Question
1.Fowler Company on July 15 sells merchandise on account to East Co. for $1,200, terms 2/10, n/30. On July 20 East Co. returns merchandise worth
1.Fowler Company on July 15 sells merchandise on account to East Co. for $1,200, terms 2/10, n/30. On July 20 East Co. returns merchandise worth $200 to Fowler Company. On July 24 payment is received from East Co. for the balance due. What is the amount of cash received? (Round answer to the nearest dollar)
2.On May 1, 2013, Pinkley Company sells office furniture for $150,000 cash. The office furniture originally cost $375,000 when purchased on January 1, 2006. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $37,500. What depreciation expense should be recorded on this asset in 2013?
3.In 2013, Lang Company had net credit sales of $1,266,000. On January 1, 2013, Allowance for Doubtful Accounts had a credit balance of $25,000. During 2013, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $272,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2013?
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