REQUIRED: Answer each of the following eleven questions: Use the following data

Question

REQUIRED: Answer each of the following eleven questions: Use the following data for the next four questions: On December 31, 2011, the unadjusted trial balance of Alex Inc., included the following accounts: Credit $900,000 Debit Sales (90% represent credit sales) Accounts Receivable Allowance for Doubtful Accounts 300,000 300 1. Assume Alex estimates bad debts expense as 1% of credit sales. Prepare the adjusting entry for 2. INSTEAD of #1 Assume Alex estimates bad debts expense as 3% of year-end gross accounts 3. Based on your answer in #2 Assume Alex estimates bad debts expense as 3% of year-end gross bad debts on December 31, 2011. receivable. Prepare the adjusting entry for bad debts on December 31, 2011. accounts receivable. After the adjusting entry, the net realizable value of Alex's accounts receivable in the December 31, 2011 balance sheet is: $

Explanation / Answer

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Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. 6. Units Unit Cost Total Cost Jan 1 Beg Inventory 300 3 900 Mar 5 Purchase 900 4 3600 Sep 3 Purchase 1000 5 5000 Nov 4 Purchase 500 7 3500 Cost of Goods Available for Sale 13000 7. Units Unit Cost Total Cost Jan 1 Beg Inventory 300 3 900 Sold Mar 5 Purchase 900 4 3600 Sold Sep 3 Purchase 1000 5 5000 Inventory Nov 4 Purchase 500 7 3500 Inventory Cost of Ending Inventory 8500 8 Units Unit Cost Total Cost Sold Units Jan 1 Beg Inventory 300 3 900 Mar 5 Purchase 900 4 3600 Sep 3 Purchase 1000 5 5000 700 Nov 4 Purchase 500 7 3500 500 500 7 3500 700 5 3500 Cost of Goods Sold: 7000 Sale Value (1200*10) 12000 Less: Cost of Goods Sold 7000 Gross Margin 5000

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