Kookie, Inc. receives inventory on Mondays of each week. It makes sales throughout the week, but records sales on a weekly basis on Fridays. Kookie has a beginning inventory of 4,000 purchased at $5 each. Kookie, Inc.’s suppliers do not offer discounts. The following purchases and sales were recorded during March. The selling price is $10 per unit. Operating expenses are $50,000 and the tax rate is 20 percent.

Purchases Sales

March 23,000 units

March 58,000 units at $6

March 97,000 units

March 126,000 units at $7

March 164,000 units

March 195,000 units at $8

March 231,000 units

March 262,000 units at $9

March 309,000 units

Required:

1.Determine the cost of goods sold, net income, and ending inventory using FIFO.

2.Determine the cost of goods sold, net income, and ending inventory using LIFO.

3.Assume that all expenses, inventory purchases, and revenues are paid or received in cash. What is the operating cash flow using FIFO versus LIFO?

Kookie, Inc. receives inventory on Mondays of each week. It makes sales throughout the week, but records sales on weekly basis on Fridays. The following sales were recorded in March. Each unit sells for $12 and all sales are on account.

March 23,000 units sold (cost of goods sold = $24,000)

March 95,000 units sold (cost of goods sold = $40,950)

March 166,000 units sold (cost of goods sold = $50,400)

March 235,500 units sold (cost of goods sold = $47,775)

March 306,500 units sold (cost of goods sold = $57,825)

Required:

1.Make the journal entries to record the above events.

2.Make the journal entry to record the collection of the March 2 sale assuming a 2 percent discount is taken.

3.Make the journal entry to record the collection of the March 9 sale assuming no discount is taken.

4.Make the journal entry to record the return of the March 16 sale.

Hamilton Company shows the following information concerning its net realizable value of accounts receivable.

 EndingBeginning

Accounts receivable$750,000$625,000

Allowance for uncollectible accounts 80,000 60,000

During the period, sales were $2,550,000, sales returns and allowances were $35,000, sales discounts were $40,800. The uncollectible accounts expense for the period was $25,000 and $5,000 of accounts were written off as uncollectible.

How much cash was received from customers?