[The following information applies to the questions displayed below.]

At the beginning of 2018, Brad?s Heating & Air (BHA) has a balance of $24,500 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2018, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2018 and 2019.

a. During 2018, install air conditioning systems on account, $175,000.

b. During 2018, collect $170,000 from customers on account.

c. At the end of 2018, estimate that uncollectible accounts total 20% of ending accounts receivable.

d. In 2019, customers? accounts totaling $6,500 are written off as uncollectible.

Record each transaction using the allowance method.

.Record each transaction using the direct write-off method

3.Calculate the difference in net income (before taxes) in 2018 and 2019 between the two methods.

allowance method direct write off method

2018

2019

---------------

Physicians' Hospital has the following balances on December 31, 2018, before any adjustment: Accounts Receivable = $52,000; Allowance for Uncollectible Accounts = $1,200 (credit). On December 31, 2018, Physicians' estimates uncollectible accounts to be 10% of accounts receivable.

Required:

1.Record the adjustment for uncollectible accounts on December 31, 2018.

2.Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.

bad dept expence:

allowance of uncollectable amounts

3.Calculate the net realizable value of accounts receivable.

---------------------------------

Required: 1. Using FIFO, calculate ending inventory. cost of goods sold, sales revenue, and gross prot. Beginning Inventory 50 $ 2,900 Purchases: . Homework Help - Q&A from 01 x m HW chpt 6 x u Asslgnment Print View 10 w/ a x G screenshot a whole webpage n x (- C' ' ezto.mheducation.com/hm.tpx HW chpt 6 instructions I help A E [The following information applies to the questions displayed below. ] During the year, TRC Corporation has the following inventory transactions. Number Unlt Date Transaction of Units Cost Total Cost Jan. 1 Beginning inventory 58 $ 50 $ 2,900 Apr. 7 Purchase 138 52 7.176 Jul. 16 Purchase 208 55 11,440 Oct 6 Purchase 118 56 6,608 522 $ 28,124 For the entire year, the company sells 444 units of inventory for $68 each' Required information 2 value: ' 5.00 points \fm HW chpt 6 6 9 C' '(Dezto.mheducation.com/hm.tpx Q {'3' O I I S [The following [Information applies re rhe questions displayed below.) Dunng the year, we Corpomtlon has the lollowlng Invemory transactlons. , IWHSWHE T, Jam Beglnnlnglnvento s 2300 AprJ Purchase 7.176 Jul. 16 Purchase "A40 oas Purchase $503 5 23.124 For the enure year. me company sells 444 units of Invenwry for $53 each. 2 . value: qunlmd Intonnmon 500 points mun-d: 1. Using FIFO, calculate ending Inventory, cost of goods sold, sales revenue, and gross prot. Beglnnlna lnvanmry Pumhases: Apr. 7 13B 3 52 7.176 0 JUIJE 205 S 55 11,440 0 0121.6 S 56 2.240 78 S 56 4,368 Tmal Sales ran/anus Gross prot m HW chpt 6 6 9 C' '(Dezto.mheducation.com/hm.tpx 2. Using LIFO, wlculam ending invenmry, cost of goods sold, sales revenue, and gross pml. mm? 58 s 50 5 2,900 Purchases: Apr 01 135 s 52 1,116 Jul 16 203 s 55 11.440 208 s 55 11,440 0 Gems 118 s 56 6,603 a Tmal 522 '5 28,124 sales revenue Glass pml Hlm Mormon 3300!: a Rnouml Hint!\" Check my work 4_ value: Required Information 500 polms m HW chpt 6 6 9 C' '(Dezto.mheducation.com/hm.tpx Him#l Check m1 wnrk value: Required Information 4' 5.00 palms 3. Using weigmed-everege cost, calculate endlng Invemnry, cost 0! goods sum, sales revenue, and gross pmt, (Round "Wnlnmdvcm- Coll par unit\" lo 4 dcclmll plum) Esalnnlng Inventory Purchases: Apr 01 1 33 7,1 76 Jul 16 203 11,440 001 05 Total Sales revenue Gross prom Hlm: Mormon eBuak a. Ratouma Hint!\