Question $1$: Some of Tammy Company's accounting records for the final quarter of $2022$ were

lost due to a software glitch. As a Canadian private company adhering to IFRS standards, the

task of reconstructing the inventory and receivables records has been assigned to you. Below is

the salvaged information available for reconstruction:

Extract from the Quarterly Statement of Financial Position as at December $31,2022$

Aging of receivables analysis as at December $31,2022($Incomplete$)$

Through discussions with the CEO, the controller, and other team members from the

accounting department, you managed to compile the following information:

Firm's Accounting Policies:

a$)$ The company uses the periodic inventory system and the FIFO cost flow assumption.

b$)$ The company applies the aging of receivables analysis to adjust the AFDA at year$-$end.

The only inventory and sale$-$related transactions during the quarter were:

On October $15,2022,$ Tammy Company sold $160$ units at $$200$ each, shipped on the

same day, FOB destination, and arrived $3$ days later, freight$-$out cost is cash $$160$ for the

entire shipment, and payment within $30$ days. As at December $31,2022,$ the client had

still not paid.On November $10,$ Tammy Company received from its supplier a shipment of $2,000$ units

costing $$100$ each. Tammy Company also had to cover shipping costs of $$2,000,$ import

duty taxes of $$400($non$-$refundable$).$

On December $1,$ Tammy Company sold $1,000$ units at $$200$ each, $\frac{2}{10},\frac{n}{30}.$ The client

paid half of the total amount on December $5,$ but made no other payment since.

On December $15,2022,$ Tammy Company signed a contract for the purchase of $1,000$

units of inventory from a Canadian supplier at a price of $$130$ per unit. The supplier

shipped the goods FOB destination on December $27.$ On December $31,2022,$ the goods

had not yet been delivered, and no invoice had been received.

Other information:

a$)$ The physical count of inventory at the end of the previous quarter was $2,000$ units. The

physical count of inventory at the end of December $2022$ was $2,840$ units.

b$)$ The beginning balance for Gross Accounts Receivable for the quarter was $$30,000,$

among which $$26,000$ were collected during the final quarter $[$No need to record the

journal entry for this cash collection$]$

c$)$ The CEO estimates that inventory on hand at the end of $2022$ could be sold for a per

unit price of $$80,$ with $$2\mathrm{.}00$ per unit costs to sell.

Required:

Re$-$construct the journal entries for the transactions during the quarter.

Make ALL necessary quarter$-$end adjusting entries as at December $31,2022.$ Show your

computation. $($Hint: there are $4$ adjusting entries needed to $(1)$ record the write$-$down of

inventory $(2)$ record COGS and update ending inventory $(3)$ record write$-$off $(4)$ record

bad debt expense using aging analysis.$)$

Present to the CEO the calculation of gross profit.