Multiple Choice Question 81 Marigold Corp. has the following inventory data: Jul

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Multiple Choice Question 81 Marigold Corp. has the following inventory data: July 1 Beginning inventory 31 units at $16 $496 7 Purchases 109 units at $16 1744 22 Purchases 16 units at $17 272 $2512 A physical count of merchandise inventory on July 30 reveals that there are 39 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is

In 2017 Pharoah Company had net credit sales of $2340000. On January 1, 2017, Allowance for Doubtful Accounts had a credit balance of $42000. During 2017, $109000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $790000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017?

$44000

$121000

$67000

$79000

The following totals for the month of March were taken from the payroll records of Vaughn Manufacturing.

The entry to record the payment of net payroll would include a

debit to Salaries and Wages Payable for $173735.

debit to Salaries and Wages Expense for $173735.

debit to Salaries and Wages Payable for $189735.

credit to Cash for $173735.

$44000

Explanation / Answer

Answer for Question Number 1:

Calculation of Sales Units:

Using FIFO method Value of Closing Stock:

Answer No: 2

Opening Balance of $ 42,000 is setoff against the occurred Bad debt of $ 109000. Hence, new provision for whole amount of $ 790000 X 10% = $ 79,000 is require to be made.

Answer $ 79,000

Answer No.3:

Journal Entry is:

Particulars

Debit

Credit

Salaries

$275400

To FICA taxes withheld

$ 21070

To Income taxes withheld

$ 60600

To Medical insurance deductions

$ 3995

To Federal unemployment taxes

$ 2200

To State unemployment taxes  

$ 13800

To Cash/Bank

$ 173735

Answer is credit to Cash for $173735

Date Particulars Units Rate Per Unit Value July 01 Opening Units 31 $ 16 $ 496 July 07 Purchases 109 $16 $ 1744 July 22 Purchases 16 $ 17 $ 272 Total 156 Less Closing Units 39 Sales Units 117

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