Use the following information regarding ABC Co. in 2020 (assume this is the first year of operations for ABC Co., and assume ABC pays cash unless noted otherwise). Assume ABC uses FIFO perpetual for inventory, straight-line depreciation, and estimates it will not collect 4% of accounts receivable.

1/1 Issues 10,000 shares of common stock for $5 each. 2/15 Purchase 2,000 units of inventory at $4/unit. 3/1 Sells 500 units of inventory for $16/unit, customer pays on account. 4/1 Signs a 2-year lease for its manufacturing facility, paying the first years rent of $3,600 upfront. 6/1 Purchases equipment for $60,000 on account, 6 year useful life, $7,000 salvage value. It cost ABC $10,000 to have the equipment installed, also paid on account. 7/1 Sells 100 units of inventory for $20 per unit, customer pays on account. 9/1 The customer from the 3/1 sale of inventory paid back 70% of their balance. 10/15 Declared and paid $3,000 of dividends. 12/1 Purchase $1,200 worth of supplies. By 12/31, 20% have been used.

What is ABCs bad debt expense for 2020?

Group of answer choices

$176

$4,000

$400

$320

None of the above.

What is cost of goods sold for 2020?

Group of answer choices

$8,000

None of the above.

$2,400

$5,600

$2,000

What amount is reported on ABCs 2020 Balance Sheet related to Property, Plant, & Equipment, assuming ABC depreciates beginning with the month of acquisition?

Group of answer choices

$63,875

$59,500

$51,167

None of the above.

$58,847

What is the journal entry related to the 3/1 sale of inventory?

Group of answer choices

Accounts Receivable 8,000

Sales 8,000

Cash 8,000

Sales 8,000

Accounts Receivable 8,000

Inventory 8,000

Cost of Goods Sold 2,000

Sales 2,000

No entry required

Accounts Receivable 8,000

Sales 8,000

Cost of Goods Sold 2,000

Inventory 2,000