| (a) | Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO. | | | cost of goods sold: FIFO: $10,240 LIFO: $11,040 ending inventory: FIFO: $ 7,200 LIFO: $ 6,400 | | (b) | Assume that Kuffel Co. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO. | | | Cost of Goods Sold: FIFO: $10,240 LIFO:____________ Ending Inventory: FIFO: $7,200 LIFO:____________ | | A portion of the current assets section of the December 31, 2014, balance sheet for Carr Co. is presented here: | | | | | | | | | Accounts receivable | $ | 42,000 | | | | | Less: Allowance for bad debts | | (7,900 | ) | $ | 34,100 | | | | The company's accounting records revealed the following information for the year ended December 31, 2014: | | | | | | | Sales (all on account) | $409,000 | | Cash collections from customers | 419,000 | | Accounts written off | 15,000 | | Bad debts expense (accrued at 12/31/14) | 10,700 | | | | Required: | | Using the information provided for 2014, calculate the net realizable value of accounts receivable at December 31, 2013, and prepare the appropriate balance sheet presentation for Carr Co., as of that point in time. (Amounts to be deducted should be indicated with minus sign.) | | as of December 31, 2013 Accounts Receivable: __________________ less Allowance for Bad Debts:_____________ Net realizable value of Accounts Receivable:_______________ | |
