Question

The inventory records for Radford Co. reflected the following 1 لا o لا Beginning inventory @ May 1 First purchase @ May 7 second purchase @ May 17 Third purchase @ May 23 Sales @ May 31 , 200 units @ $4.00 1,300 units @ $4.20 1,500 units @ $4.30 1,100 units @ $4.40 3,900 units @ $5.90 o لا o o Determine the amount of cost of goods sold assuming the LIFO cost flow m

Answer 1

1
Under LIFO, inventories purchased last are assumed to be sold first
Cost of goods sold:
From Third purchase	4840	=1100*4.40
From Second purchase	6450	=1500*4.30
From First purchase	5460	=1300*4.20
Cost of goods sold using LIFO	16750

2
Days past due	Amount	% uncollectible	Amount uncollectible
Current	56000	1%	560
0-30	23500	5%	1175
31-60	5360	10%	536
61-90	2520	25%	630
Over 90	2200	50%	1100
Total	89580		4001
Estimated amount uncollectible	4001
Less: Balance in Allowance for Doubtful accounts	630	=3020-2390
Uncollectible accounts expenses for Year 2	3371