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You’re finished!  Be sure to scroll up and make sure all your questions have been answered.  Once you’re sure you’ve finished, then submit the exam.  This is your last assignment for this semester for this class! There are 68 points that will need to be graded by your instructor.  So you could possibly get 68 more points (in addition to the points from the questions you already answered). Good luck and have a great Holiday break! Mrs. S

How does the year-end adjusting entry to recognize Uncollectible Accounts Expense (Bad Debt Expense) affect the elements of the financial statements?

Worth 6 points. The following information is taken from the adjusted trial balance of the Studio Art Supply Company at the end of Year 1: Cash $ 18,000 Accounts receivable 48,500 Allowance for doubtful accounts 2,000 Sales 355,000 Cost of goods sold 198,200 Operating expenses 84,000 Studio Art Supply offers all of its charge customers the credit terms, 2/10, n/30. Required:   SHOW YOUR COMPUTATIONS FOR FULL CREDIT!a) Compute the accounts receivable turnover ratio.b) Compute the average number of days to collect accounts receivable.  Round your answer to a whole number for days.c) Comment on the meaning of these ratios and specifically on how well, or not, this firm is managing its accounts receivable.

How is the average number of days to collect accounts receivable computed?

Worth 10 points. Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During Year 2, the company wrote off $4,640 in uncollectible accounts. In preparation for the company’s estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of DaysPast Due ReceivablesAmount % Likely to beUncollectible Amount Likely to beUncollectible Current $104,000 1% $ 0 to 30 45,000 5% 31 to 60 9,920 10% 61 to 90 4,440 25% Over 90 3,800 50% Total $167,160 $ 1. Complete the aging summary table. 2. Based on the information in the problem and your total in the aging summary table, what amount will be reported as Uncollectible Accounts Expense on the Year 2 income statement? HINT: Use t-accounts to post the transactions described in the problem. Then you can figure out how much to adjust in the uncollectible accounts expense (Bad debt (or Uncollectible Accounts) Expense) at the end of the year.

The Byrne Company had its entire inventory destroyed when a fire swept through the company’s warehouse on April 30, Year 2. Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following information for the period up to the date of the fire was taken from the accounting records:   Sales $ 560,000 Purchases    400,000 Beginning inventory      40,000   Required:Assuming that the gross margin has averaged 35% of their selling price, what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form and label your numbers!

On April 30, Midwest Company established a petty cash fund of $1,000. On May 1, a disbursement of $355 was made from the fund for payment of delivery expense. What entry should be made on May 1 to record this disbursement?

Which of the following is not a common feature of ethical misconduct?

Jones Company sells exercise bikes. Its beginning inventory was 100 units at $200 per unit. During the year, Jones made two purchases of the bikes: first, a 300-unit purchase at $220 per unit, and then 200 units at $250 per unit. The ending inventory for the year was 250 units. Required:                                              SHOW AND LABEL ALL COMPUTATIONS! 1.  What is the total Cost of Goods Available? Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Jones uses each of the following inventory cost flow methods:2) FIFO  a.  Cost of Goods Sold     b.  Ending Inventory3) LIFO   a.  Cost of Goods Sold     b.  Ending Inventory4) Weighted average   a.  Cost of Goods Sold     b.  Ending Inventory (Round intermediate calculations to two decimal places. Round final answers to whole dollars.) Cost of Goods Sold Ending Inventory a) FIFO $ $ b) LIFO $ $ c) Weighted Average $ $

Taylor Company had beginning inventory of $1,280 and ending inventory of $1,810. Taylor Company had cost of goods sold amounting to $3,440. What is the amount of inventory that was purchased during the period?