Williams haka

Mumford Corporation invested $30,000 in marketable securities on it sold some of these investments for $10,000, and on December 18, 1t so ments for $5,000. The securities sold on December 9 had cost the company securities sold on December 18 had cost the company $6,000. December 4. On December 9 re of these invest- $7,000, whereas the d mo a. Record the purchase of marketable securities on December 4 c. Record the sale of marketable securities on December 18. d. Record the necessary fair value adjustment on December 31, assuming that th of the company's remaining unsold securities was $20,000. The credit manager of Montour F accounts receivable and credit losses during the current year: uel has gathered the following information about the company's Net credit sales for the year........ Accounts receivable at year-end .. . Uncollectible accounts receivable: $8,000,000 1,750,000 Actually written off during the year..... Estimated portion of year-end receivables expected to prove 84,000 180,000 Prepare one journal entry summarizing the recognition of uncollectible accounts expense for the entire year under each of the following independent assumptions: a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year-end aging schedule. The balance in the allowance account at the beginning of the current year was $25,000. (Consider the effect of the write-offs during the year on the balance in the Allowance for Doubtful Accounts.) The company uses the direct write-off method of accounting for uncollectible accounts. b. c. Which of the three methods gives investors and creditors the most accurate assessment of a company's liquidity? Defend your answer d