ArundelCompany uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

Dollar Value

Age of Account

Estimated Collectible

$250,000

< 30 days old

99.0%

75,000

30 to 60 days old

90.0%

35,000

61 to 120 days old

79.5%

15,000

> 120 days old

15.0%

The current unadjusted Allowance for UncollectibleAccounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in theAllowance for Doubtful Accounts?Round to nearest whole dollar.

Your Answer:

Question 6 options:

Answer

Question 7(7 points)

ArundelCompany uses percentage of sales to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $700,000 in credit sales.Arundel assumes that 2.0% of sales will eventually be uncollectible.before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 6,000.What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?

Your Answer:

Question 7 options:

Answer

Question 8(7 points)

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date

Activity

Quantity

Unit Price

5/1

Beginning Inventory

175

$10.50

5/5

Purchase

200

$10.50

5/10

Sales

300

$25

5/15

Purchase

200

$13.00

5/20

Sales

250

$28

5/25

Purchase

150

$13.00

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May.Round to the nearest cent.