STARTING FROM QUESTION 1
> aedue-my.sharepoint.com + Netflix Home - American University of the Middle East (A... Course: Intermediate Accounting I - ACT410 - 02.. Final Week Assessment - Version B.docx Homework Help - Q&A from Online Tutors - Cours... Final Week Assessment (20%) QUESTION 1. (30 POINTS) Buna Co. reports the following financial information before adjustments on December 31, 2020. Dr Cr. Accounts Receivable (150,000 Allowance for Doubtful Accounts $3,000 Required a) Prepare the journal entry to record Bad Debt Expense assuming that the company estimates bad debts at 4% of accounts receivable, and calculate the cash realizable value for Accounts Receivable. (10 points). Explain your solution using T-accounts (5 points) b) Prepare the journal entry to record the write-off of $4,000 from accounts receivable and calculate the cash realizable value for Accounts Receivable after the write-off. (10 points). Explain your solution using T-accounts (5 points) SolutionPage 4 of 7 Netflix I] a Home - American University of the Middle East (A. QUESTION 2. aedue-myisharepoinmom ;' Course: Intermediate Accounting I - ACT410 - 02 . Final Week Assessment , Version B ' Final Week Assessment - Version Bdocx CL (40 POINTS) Beta Company had a beginning inventory of 60 units at a cost of $4 per unit. Below you will find information related to purchases and sales for the month ofluly 2020. PURCHASES SALES Date Description Units Unit cost Date Description Units Unit price July 10 Purchased 200 8 July 9 Sold 40 20 20 Purchased 80 12 14 Sold 140 20 28 Sold 60 20 Required: 3) Assuming the company uses the Pin: cost flow assumption and a periodic Inventory system determine the following costs: (15 points) Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory COGS n Show value here V Show calculations here v [3 Accessibility Mode 606+?! u Homework Help - on from Online Tutors - Cours. Slgrl In BDownload @Pr'mi prind ... 100% Give Feedback to Microsoft aedue-my.sharepoint.com + N Netflix Home - American University of the Middle East (A... Course: Intermediate Accounting I - ACT410 - 02... Final Week Assessment - Version B.docx Homework Help - Q&A from Online Tutors - Cours... Final Week Assessment (20%) b) Assuming the company uses the Average cost flow assumption and a perpetual inventory system calculate Ending Inventory and COGS using the table below (or you can use the space after the table) (15 points) DATE PURCHASES SALES BALANCE (INVENTORY) Units Unit Cost Total Cost Units Unit Cost Total Cost Units Unit Cost Total Cost 1 9 10 14 20 28 Ending COGS = Inventory =aedue-my.sharepoint.com C + N Netflix Home - American University of the Middle East (A... Course: Intermediate Accounting I - ACT410 - 02... Final Week Assessment - Version B.docx Homework Help - Q&A from Online Tutors - Cours... c) Do you agree with the following statement (explain) (10 points) "Application of FiFo cost flow assumption never results in a lower Gross Profit compared to Average cost-flow assumption" ACT 410- Intermediate Accounting I - Summer 2020 Page 5|7 I] aedue-myisharepointcom C, @ [i] + El Netilix E Home - American University of the Middle East (A 2,! Course: Intermediate Accounting I - Acme - 02 . A Final Week Assessment - Version eooex u Homework Help - on from Online Tutors - cours. Slg n in Final Week Assessments Version is [3 Accessibility Mode B Download IE: Print 9 Find ... QUESTION 3. (30 POINTS) Prado Co. uses the LCNRV method to evaluate inventory for nancial reporting purposes. Information related to inventory at December 31, 2020 appears below. Item X Item V Item Z Quantity 20 units 15 units 5 units Estimated Selling Price per unit $200 $140 $120 Cost per unit 180 100 95 Cost to complete per unit 30 15 5 Cost to sell per unit 2 5 7 Required a) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for each item individually. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points) Item A Item B Item C Total inventory LCNRV JOURNAL ENTRV DATE ACCOUNT TITLES DEBIT CREDIT b) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for inventory in total. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points) Total Inventory LCNRV JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT Page 6 of 7 100% Give Feedback to Microsoft aedue-my.sharepoint.com + Netflix Home - American University of the Middle East (A... Course: Intermediate Accounting I - ACT410 - 02... X Final Week Assessment - Version B.docx Homework Help - Q&A from Online Tutors - Cours.. Word Sign in Final Week Assessment - Version B [ Accessibility Mode Download Print Find ... b) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for inventory in total. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points) Total inventory LCNRV JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT ACT 410- Intermediate Accounting I - Summer 2020 Page 6|7 Final Week Assessment (20%) c) What should the company do if during 2021 NRV for all three items rises above cost. (10 points) Page 6 of 7 100% Give Feedback to Microsoft
