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FINANCIAL ACCOUNTING
ACCT 201
ASSIGNMENT 4 Last Date for Submission 09th April 2016 You are
required to work in this assignment individually. Any suspicious
activities or
cheating will result zero grade in this assignment. 1. Describe
perpetual system and periodic system [1 point]
2. The trial balance before adjustment of XYZ Company reports the
following balances: Dr.
$100,000 Accounts receivable
Allowance for doubtful accounts
Sales (all on credit)
Sales returns and allowances Cr.
$ 2,500
750,000 40,000 Instructions
Prepare the entries for estimated bad debts assuming that doubtful
accounts are estimated to
be (1) 6% of gross accounts receivable and (2) 1% of net sales. [1
point]
3. During June, the following changes in inventory item 29 took
place:
June 1 Balance
1,400 units @ $24
14 Purchased
900 units @ $36
24 Purchased
700 units @ $30](https://image.slidesharecdn.com/financialaccountingacct201assignment4-170407093438/85/FINANCIAL-ACCOUNTING-ACCT-201-ASSIGNMENT-4-1-320.jpg)
![8 Sold
400 units @ $50
10 Sold
1,000 units @ $40
29 Sold
500 units @ $44
Perpetual inventories are maintained in units only.
Instructions
What is the cost of the ending inventory for item 29 under the
following methods? (Show
calculations.)
(a) FIFO. [1.5 points]
(b) Average Cost. [1.5 points]
4. What are the advantages and disadvantages of LIFO? [1 point]
5. Ahmed Co. records purchase discounts lost and uses perpetual
inventories. Prepare journal
entries in general journal form for the following:
1 (a) Purchased merchandise costing $900 with terms 2/10, n/30. [1
point]
(b) Payment was made thirty days after the purchase. [1 point]
6. Sales and purchases of company XYZ for the year 2010 had been
$1,400,000 and $980,000,
respectively. The beginning inventory (Jan. 1, 2010) was $170,000;
XYZ's gross profit is 40% of
selling price.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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FINANCIAL ACCOUNTING ACCT 201 ASSIGNMENT 4
- 1. Buy here: http://student.land/financial-accounting-acct-201-assign ment-4/ FINANCIAL ACCOUNTING ACCT 201 ASSIGNMENT 4 Last Date for Submission 09th April 2016 You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. 1. Describe perpetual system and periodic system [1 point] 2. The trial balance before adjustment of XYZ Company reports the following balances: Dr. $100,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Cr. $ 2,500 750,000 40,000 Instructions Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. [1 point] 3. During June, the following changes in inventory item 29 took place: June 1 Balance 1,400 units @ $24 14 Purchased 900 units @ $36 24 Purchased 700 units @ $30
- 2. 8 Sold 400 units @ $50 10 Sold 1,000 units @ $40 29 Sold 500 units @ $44 Perpetual inventories are maintained in units only. Instructions What is the cost of the ending inventory for item 29 under the following methods? (Show calculations.) (a) FIFO. [1.5 points] (b) Average Cost. [1.5 points] 4. What are the advantages and disadvantages of LIFO? [1 point] 5. Ahmed Co. records purchase discounts lost and uses perpetual inventories. Prepare journal entries in general journal form for the following: 1 (a) Purchased merchandise costing $900 with terms 2/10, n/30. [1 point] (b) Payment was made thirty days after the purchase. [1 point] 6. Sales and purchases of company XYZ for the year 2010 had been $1,400,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2010) was $170,000; XYZ's gross profit is 40% of selling price.