Question: The following is information related to Klugman Company: The allowance for uncollectible accounts...

The following is information related to Klugman Company:

The allowance for uncollectible accounts had a debit balance of $800 on January 1, 2013. During the year, bad debts of $600 were written off. The sales on credit during the year were $200,000.

Accounts receivable aging schedule is presented below along with the estimated uncollectible expressed as a percent for each age group:

Klugman Co., Inc. Schedule of account Receivable by Age December 31, 2013
Days past Due	Accounts Receivable Balance	Estimated Percent Uncollectible	Estimated Allowance
Current	$ 45,000	1%	?
1-30	15,000	3%	?
31-60	5,000	5%	?
Over 60	2,000	10%	?
			?

Required:

1- Under the Income statement approach, prepare all journal entries for 2013 with respect to bad debts, the allowance for uncollectible accounts, and how would Account Receivable be shown in the Balance Sheet at December 31, 2013. Assume that past experience suggests 0.5% of credit sales would be uncollectible.

2- Repeat the requirement 1 applying the Aging of receivable method.

Q2: Shown below is activity for one of the products of Denver Office Equipment: Required: 1. Compute the ending inventory and cost of goods sold assuming Denver uses FIFO. 2. Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a periodic inventory system. 3. Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a perpetual inventory system.