please post answers tk questilns 1-11.
UMULATIVE REVIEW PROBLEM: CHAPTER 10 The purpose of this problem is to provide an opportunity to review both new concepts in the current chapter and major concepts in previous chapters. This cumulative review should assist you in integrating accounting concepts and preparing for exams. RROUIRED: Answer each of the following eleven questions: Use the following data for the next four questions: On December 31, 2011, the unadjusted trial balance of Alex Inc., included the following accounts: Debit Credit $900,000 X (0.01) Sales (90% represent credit sales) Accounts Receivable Allowance for Doubtful Accounts $300,000 300 1. Assume Alex estimates bad debts expense as 1% of credit sales. Prepare the adjusting entry for bad debts on December 31, 2011. 2. INSTEAD of #1, Assume Alex estimates bad debts expense as 3% of year-end gross accounts receivable. Prepare the adjusting entry for bad debts on December 31, 2011 3. Based on your answer in #2, Assume Alex estimates bad debts expense as 3% of year-end gross accounts receivable. After the adjusting entry, the net realizable value of Alex's accounts receivable in the December 31, 2011 balance sheet is: $ 426 CHAPTER 10 ount on January llectible account receivable on January 8 4. Based on your answer in 2. Alex writes off an uncollectible customer account 2012 in the amount of $500. Prepare the journal entry to write off the uncollectible receivable. 5. Based on your answer in #4. After the entry to write off the account receivable on La 2012, the net realizable value of Alex's accounts receivables in the January 8, 2012 balances is: $ 13000 Use the following data for the next five questions: Peachy Inc., has an inventory of calculators on January 1 and purchases of this item during 2011 as follows: Beginning inventory Jan. 1 900 300 units @ $3.00 Mar. 5 Purchase 900 units $4.00 3600 Sept. 3 Purchase 1,000 units $5.00 5.000 Nov. 4 Purchase 500 units $7.00 - 3500 2700 During 2011, Peachy sold 1,200 calculators at $10.00 each. Assume Peachy uses a Periodic Inventory System 6. Compute the total cost of Goods Available For Sale on December 31, 2011. $ 7. Using FIFO, compute the cost of the ending inventory on December 31, 2011. $ 8. Using LIFO, compute the Gross Margin on the income statement for the year ended December 31, 2011. $ Use the following data for the next three questions. (Round all calculations to the nearest whole dollar!) On July 1, 2011 Dawn Company purchased a delivery truck for $95,000. The estimated useful life of the truck is five years, during which time it will be driven about 200,000 miles. Estimated residual value is $5,000. 9. If Dawn Company uses the sum-of-the-years'-digits method of depreciation, the depreciation expense for 2012 will be: 10. If Dawn Company uses the double-declining-balance method of depreciation, the accumulated depreciation balance at December 31, 2011 (after adjusting entries) will be: (10.9 11. If Dawn Company uses the straight-line method of depreciation, the book value of the asset at December 31, 2013, (after adjusting entries), will be
