ACCT2110 Financial Accounting Group Test 2 Problem 1. Schneider Book Store entered into the transactions listed below July 6 Purchased S1,700 of merchandise on credit, terms n/30 8 Returned $200 of the items purchased on July 6 9 Paid freight charges of $90 on the items purchased July 6. 19 Sold merchandise on credit for $3,400, terms 1/10, n/30. The merchandise had an inventory cost of $1,700. 22 Of the merchandise sold on July 19, $200 of it was returned. The items had cost the store $100. 28 Received payment in full from the customer of July 19 31 Paid for the merchandise purchased on July 6. Instructions: Prepare Schneider's necessary entries, assuming use of the perpetual inventory system. Problem 2. The Dexter Company sells many products. Whamo is one of its popular items. Below is an analysis of the inventory purchases and sales of Whamo for the month of March. Dexter Company uses the periodic inventory system Purchase Units Unit Cost Sales Units Selling Price Unit 1-Mar Beg. Inventory 100 60 560 $75 3-Mar Purchase 4-Mar Sales 70 $120 10-Mar Purchase 200 $82 80 80 50 $130 $130 $130 16-Mar Sales 19-Mar Sales 25-Mar Sales 30-Mar Purchase 40 $90 Instructions: (Show computations) (a) Using FIFO, calculate the ending inventory and the cost of goods sold for March (b) Using Weighted-average, calculate the ending inventory and the cost of goods sold for March (c) Using LIFO, calculate the ending inventory and the cost of goods sold for March Problem 3. Using the following information, prepare a bank reconciliation and any adjusting entries necessary as a result of the bank reconciliation for Larson Company for May 31, 2015. a. The bank statement balance is $9,100. b. The cash account balance is $7,712 c. Outstanding checks totaled $1,600. d. Deposits in transit are $300. e. Collection of note by bank $400, and interest earned $12 f. The bank service charge is $24. g A NSF check for $100 from a customer was returned with the statement h. A check for $300 from a customer on account that cleared the bank in May was journalized and posted for $500 Problem 4. The December 31, 2015 balance sheet of the Bryan Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2009, the following transactions occurred: sales on account $1,450,000 sales returns and allowances, $100,000, collections from custoemers, $1,300,000; accounts written off, $35,000, previously written off accounts of $4,000 were collected Instructions: (a) Journalize these transactions for 2016. (b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 6% of accounts receivable at year end, what is the adjusting entry at December 31, 2016? Problem 5. Bermuda Distributors has the following transactions related to notes receivable during the last two months of the year Dec. , Loaned S12.000 cash to S. Toffer on a 1-year, i0% note, Sold goods to J. James, receiving a S2,400, 60-day, i2% note. 15 31 Accrued interest revenue on all notes receivable Instructions: Journalize the transactions for Bermuda Distributors 2-1
