can someone correct these answers for me before i submit?

ASSIGNMENT 4: INVENTORY Problem 1(58%) Assume you are using perpetual inventory system: A) Record the below transactions in a journal B) Post the transactions to T-Ledger Accounts. C) Then determine the followings Merchandise Inventory Balance $ COGS Balance $ Net Sales $ Gross Profit on Sales $ Gross Profit Rate Transactions 1. Purchased goods for $140,000 on credit with terms 2/10, n/30. 2. Returned $5,000 of the merchandise. 3. Paid for the merchandise in transaction 1 within 10 days. 4. Sold goods for $45,000 on credit with terms 2/10, n/30. The cost of the goods was $25,000. 5. $4,000 of the goods in transaction 4 was returned. Sale price of goods was $7,000. 6. Received payment for transaction 4 within 10 days. 7. Goods in transaction 1 were purchased with FOB shipping point. The transportation cost $300 was paid in cash. 8. It's discovered that $700 worth of goods was missing. PROBLEM 2(14 points) The following are the account balances from the Adjusted Trial Balance of SGA Incorporated as of December 31, 2003. Cash Equipment Accumulated Depreciation Unearned Fees Merchandise Inventory Supplies Accounts Receivable Unexpired Insurance Capital Stock Dividends Accounts Payable 40,000 20,000 5,000 6,000 100,000 3,000 10,000 3,000 123,000 7,000 10,000 Rent Expense Supplies Expense Salaries Expense Utilities Expense Retained Earnings, Jan. 1 Insurance Expense Sales Sales Returns & Allowance Sales Discounts Cost of Goods Sold Instructions Use the above account balances and calculate the following. 1. Gross Profit on Sales $ 2. Gross Profit Rate 3. Net Income $ 4. Retained Earnings $ 5. Total Assets $ 6. Total Liabilities $ 7. Total Stockholders' Equity is $ 5,000 9,000 4,000 5,000 14,000 1,000 100,000 9,000 2,000 40,000 PROBLEM 3(28 points) 1. On the basis of the following data, what is the estimated cost of the merchandise inventory on October 31 by the retail method? Oct. 1 Oct. 1-31 Oct. 1-31 Merchandise Inv . . . . Purchases (net) . . . . . Sales (net) . . . . . . . . . Cost $225,000 335,000 Retail $324,500 475,500 600,000 ANSWER_____________ 2. If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on June 30, based on the following data? June 1 June 1-30 June 1-30 Merchandise Inv . . . . Purchases (net) . . . . . Sales (net) . . . . . . . . $ 75,000 $150,000 $135,000 ANSWER______________ 3. Too much inventory on hand: A. B. C. D. reduces solvency increases the cost to safeguard the asset increases the losses due to price declines all of the above 4. Inventory turnover: A. is computed by dividing average inventory by cost of merchandise sold B. measures the relationship between the volume of goods sold and amount of inventory carried C. increases the risk of loss from damaged merchandise D. is computed by dividing the beginning inventory plus the ending inventory by two E. None 5. Under a perpetual inventory system, when a shortage is discovered: A. B. C. D. 6. Merchandise Inventory is debited Cost of Merchandise Sold is credited Inventory Shortages is credited Merchandise Inventory is credited E. None The inventory data for an item for the month of May are as follows: May 1 Inventory . . . . . . . . . . . . . . . . . . . . . . . 20 units at $50 5 Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 units 10 Purchased . . . . . . . . . . . . . . . . . . . . . . 30 units at $55 20 Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 units 29 Purchased . . . . . . . . . . . . . . . . . . . . . . 29 units at $60 7. What is the cost of the merchandise inventory of 25 units on May 31 by the last-in, first-out method if the periodic system is used: A. $1,500 B. $1,275 C. $1,475 D. $1,250 E. None The following lots of a particular commodity were available for sale during the year: Beginning inventory . . . . . . . . . . . . . . . . . . . . 10 units at $60 First purchase . . . . . . . . . . . . . . . . . . . . . . . . . 25 units at $63 Second purchase . . . . . . . . . . . . . . . . . . . . . . . 30 units at $64 Third purchase . . . . . . . . . . . . . . . . . . . . . . . . 15 units at $71 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of this inventory according to the first-in, first-out method? A. B. C. D. 8. $1,200 $1,230 $1,385 $1,400 E. None The inventory data for an item for November are: Nov. 1 4 10 17 30 9. Inv . . . . . . . . . . . . . . . . . . . 20 units at $20 Sold . . . . . . . . . . . . . . . . . . 10 units Purchased . . . . . . . . . . . . . 30 units at $21 Sold . . . . . . . . . . . . . . . . . . 20 units Purchased . . . . . . . . . . . . . 10 units at $22 Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? A. $640 B. $610 C. $620 D. $630 E. None During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is: A. B. C. D. fifo lifo average cost weighted averag E. None 10. If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is: A. B. C. D. periodic lifo fifo average E. None 11. If merchandise inventory is being valued at cost and the price level is consistently rising, which method of costing will yield the largest gross profit? A. B. C. D. average cost lifo fifo weighted average E. None 12. If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest gross profit? A. B. C. D. average cost lifo fifo weighted average E. None 13. Determine the Inventory turnover from following information: Beginning Inventory(B.I)= $100, 000 Ending inventory(E.I)= $120, 000 Cost of goods sold(COGS)= $10, 000, 000 14. Use your finding from previous question: If the industry average for inventory turnover is 40, compare your inventory turnover to the industry average. Are you doing better than industry average? Why or Why not? ASSIGNMENT 5 RECEIVABLES Scenario: You are the Accountant for WanneBee Corporation WannaBee Corporation has $1,500,000 of Receivables on December 31, 2000. WannaBee uses the Allowance Method and historical data indicates that 7% of receivables become uncollectible. The end of year balance in the ADA is 0. The following are the 2000 end of year receivables. AR- Goodboy AR-BusyBody AR-DippyDo AR-MerryMen AR-CurlyCues AR-PrettyPenny $25,000 $75,000 $55,000 $145,000 $211,000 $109,000 AR-NannyNancy AR-AlphaBetCo AR-TipsyTurvy AR-HappyHart AR-MityMan AR-JumpingJax $250,000 $130,000 $98,000 $289,000 $47,000 $66,000 During 2001 the following events occurred: Goodboy defaulted. BusyBody declared bankruptcy but paid $19,000. DippyDo paid the account in full. MerryMen still owes $48,000. CurlyCues has not answered the phone for 8 months(write it off) PrettyPenny paid its account. NannyNancy paid $150,000 and on November 21 made a 120 note at 4% APR for the remainder. AlphaBetCo paid its account in full. TipsyTurvy has closed its business. HappyHart paid its bill. MityMan still owes its account. JumpingJax paid its bill and will not pay the rest. The Receivables balance at the end of the year is $2,235,000 Assignments: (1) Prepare the Required Adjusting Journal Entry for December 31, 2000. (2) Prepare journal entries for the accounts to be written off for 2001 (3) Prepare the Required Adjusting Journal Entry for December 31, 2001. Page 1 ACCOUNTING ASSIGNMENT 4 (B) T- LEDGER ACCOUNTS D Merchandise Inventory 140,000 C D 5,000 Account Payable 5,000 C 140,000 135,000 2,000 2,700 140,000 140,000 20,000 b/d 142,000 c/d 114,300 142,000 142,000 D Sales 700 b/d 161,900 C D Sales Return/Allowance 132,300 3,000 b/d 3,000 25,000 3,000 3,000 2,000 3,000 300 162,600 D 162,600 Account Receivable 25,000 3,000 22,000 C D Cash b/d 132,300 7,400 C C 25,000 25,000 300 $140,000 D Sales Discount C D 140,000 Cost of Goods b/d3,000 3,000 10,000 $3,000 $3,000 700 C 2,000 (C) Merchandise Inventory Balance = COGS Balance = Net Sales= Gross Profit on Sale= Gross Profit Rate: PROBLEM 2 Gross profit on Sale= sales - cost of goods sold 100,000 - 40,000 $60,000 Gross Profit Rate = gross profit on saleet sales 60,000/100,000 = 6/10 60% Net Income = revenue - expenses(rent, supplies, insurance utility and salaries) $40,000 - (24,000) $ 16,000 Total Assets = cash + short and long term investment+ account receivable + insurance 40,000 + 20,000 +100,000 +123,000 + 3000 +10,000 = $ 296,000 Total Liabilities = account payable + salaries payable 10,000 + 4,000 + 7,000 $ 31,000 Total Stockholders' Equity = total assets - total liability $ 296,000 - 31,000 $ 265,000 PROBLEM 3 1 Cost of the ending inventory Beginning inventory (at cost) + purchases (at cost) $225,000 + 335,000 = $560,000 $600,000 - 560,000 =$ 40,000 2. Inventory at cost = (beginning inventory + purchases) - sales (75,000 +150,000) - 135,000 = $ 90,000 3. D. All of the above 4. A. is computed by dividing average inventory by cost of merchandise sold 5. A. Merchandise Inventory is debited 6. E. NONE 7. $ 1,400 8. C. 620 9. A. fifo 10. Periodic 11. A. average cost 12. D. weighted average 13. Cost of goods sold/ inventory (Beginning inventory + ending inventory)/2 100,000 + 120,000 220,000 /2 $110,000 Cost of goods sold/ 110,000 = 10,000,000/110,000 = 90.91 14. The inventory turnover of the other company having 90 turnover compared to this industry having 40 and hence 90 has a good inventory compared to 40. ASSIGNMENT 5 RECEIVABLES 1. Net 1,500,000 0.07 x 1,500,000 A/C Cash debit 1,500,000 credit d/d 1,395,000 A/C receivables 105,000 1,500,000 1,500,000 2. Debt Bad debt Credit 33,000 Allowance for bad debt 33,000 3. Adjusting journal entries A/C Bad debt expense Expense for doubtful A/C debit credit 48,000 48,000