Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer question C. o accounting for inventory. Below are a summary of the transactions for the year Price per Cumulative COGSEnding Jan 1 Begining

Please answer question C.
image text in transcribed
o accounting for inventory. Below are a summary of the transactions for the year Price per Cumulative COGSEnding Jan 1 Begining Inventory 7,000 4.000 Units, Purchases 7,000 (BEQ-Inventory $35,000 Feb Purchase $5.50 11000 $22,000 6,000 Mar Sale Apr Sale May Purchase (4.500) 8,000 $6.00 9,500 4,000 48,000 June Sale July Sale 3,500 5,00 1 700) 1 800 3,800 (4 800 21,000 August Purchase -$6.25 5,50031,250 3,800 2,000 5,800 Sept Sale Oct Sale Nov Purchase 10 500 11250 $6.25 23,750 Dec Sale Dec 31 $125,000|| 5375 250 B(2). The company currently uses FIFO to account for inventory. However, given the adjusted balance of cost of goods sold above and a computed balance of cost of goods sold under the LIFO method of $120,000, what would be the effect on the company's net income if LIFO was used to account for inventory? C. Silver Tone Partners, Inc. has a cash receipts clerk who will fill in for the receptionist on a regular basis. Normally the receptionist would collect the mail, which includes customer payments, and record the payments in the payments jourmal, as appropriate, and get the funds ready for deposit One week the receptionist was on vacation and the cash receipts clerk filled in at the front desk. The clerk didnt log any of the customer payments in the payments journal. The following week the receptionist returned from vacation. The next day numerous customers began to call the company stating that they received past due notices but their checks had already been cashed so they didn't understand. The cash receipts clerk quit without notice and no one understood what had occurred. Explain whether this situation posed an ethical issue and how it could expose the primary stakeholders of the company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Workbook

Authors: Azhar Ul Haque Sario

1st Edition

B0C9SG1YC6, 979-8851207891

More Books

Students also viewed these Accounting questions