(Bad-Debt Reporting) Presented below are a series of unrelated situations

P7-2 (Bad-Debt Reporting) Presented below are a series of unrelated situations.

1. Halen Company’s unadjusted trial balance at December 31, 2010, included the following accounts.
Debit Credit
Allowance for doubtful accounts $4,000
Net Sales $1,200,000
Halen Company estimates its bad debt expense to be 1 and 1/2% of net sales. Determine its bad debt expense for 2010.

2. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2010, disclosed the following.
Amounts estimated to be uncollectible $ 180,000
Accounts receivable 1,750,000
Allowance for doubtful accounts (per books) 125,000
What is the net realizable value of Stuart’s receivables at December 31, 2010?

3. Shore Co. provides for doubtful accounts based on 3% of credit sales. The following data are available for 2010.
Credit sales during 2010 $2,400,000
Allowance for doubtful accounts 1/1/10 17,000
Collection of accounts written off in prior years (customer credit was reestablished) 8,000
Customer accounts written off as uncollectible during 2010 30,000
What is the balance in the Allowance for Doubtful Accounts at December 31, 2010?

4. At the end of its first year of operations, December 31, 2010, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $950,000
Customer accounts written off as uncollectible during 2010 24,000
Bad debt expense for 2010 84,000
What should be the balance in accounts receivable at December 31, 2010, before subtracting the allowance for doubtful accounts?

5. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2010.
Debit Credit
Net credit sales $750,000
Allowance for doubtful accounts $14,000
Accounts receivable 310,000
If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2010.

Instructions
Answer the questions relating to each of the five independent situations are requested.

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Wilmington Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department

PR 20-3A Wilmington Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling Departments, emerging as finished chemicals. The balance in the account Work in Process - Filling was as follows on December 1, 2010:

AND SO ON

INSTRUCTIONS:
1. Prepare a cost of production report for the Filling department for December.
2. Journalize the entries for costs transferred from Reaction to Filling and the cost transferred from filling to finished goods.
3. Determine the increase or decrease in the cost per equivalent unit from November to December for direct materials and conversion costs.
4. Discuss the uses of the cost of production report and the results of part (3).


Click here for the solution: Wilmington Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department

Below is a series of cost of goods sold sections for companies B, F, L, & R

E5-15 Below is a series of cost of goods sold sections for companies B, F, L, & R.

B F L R
Beginning Inventory $150 70 1000 (J)
Purchases 1600 1080 (G) 43590
Purchase returns and allowances 40 (D) 290 (K)
Net Purchases (a) 1030 6210 41090
Freight-In 110 (E) (H) 2240
Cost of goods purchased (b) 1280 7940 (L)
Cost of goods available for sale 1820 1350 (I) 49530
Ending Inventory 310 (F) 1450 6230
Cost of goods sold (C) 1230 7490 43300

Fill in the lettered blanks to complete the cost of goods sold sections.

Click here for the solution: Below is a series of cost of goods sold sections for companies B, F, L, & R