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a) Azar Company's ledger at the end of the current year shows Accounts Receivable of S150,000. If Allowance for Doubtful Accounts has a debit balance
a) Azar Company's ledger at the end of the current year shows Accounts Receivable of S150,000. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 6% of accounts receivable, journalize the adjusting entry for the end of the period: 2 marks b) Danube Company estimates that 1% of net credit sales will become uncollectible. Sales are $500,000, sales returns and allowances are $30,000, and the allowance for doubtful accounts has a S6,000 credit balance, journalize the adjusting entry for the end of the period: (2 marks) b) Marana Company uses the periodic inventory system to account for inventories Information related to Marana Company's inventory at November 30 is given below 4 marks) 400 units @$10.00$4,000 800 units @ $10.408,320 600 units @ $10.80 6,480 200 units @$11.60 2.320 Nov. 1 Beginning inventory 8 Purchase 16 Purchase 24 Purchase S21,120 Total units and cost 2000 units Instructions I. Compute the cost of ending inventory and Cost of Goods Sold under FIFO method assuming 450 units remain on hand at November 30. 2. Compute the cost of ending inventory and Cost of Goods Sold using the weighted-Average cost method if 450 units remain on hand at November 30
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