Question

1. At the end of 2021, Metlock Co. has accounts receivable of $756,000 and an allowance for doubtful accounts of $27,000. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,644.

(a) Use a tabular summary to record the write-off. Enter 2021 amounts as beginning balances. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

			Assets			=	Liabilities	+	Stockholders' Equity
											Retained Earnings
			Accts. Rec.	-	Allow. For Doubtful Accts	=		+	Common Stock	+	Rev.	-	Exp.
	Beg. Bal.		$enter a dollar amount		$enter a dollar amount				$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
	Jan. 24		enter a dollar amount		enter a dollar amount				enter a dollar amount		enter a dollar amount		enter a dollar amount
	Adj. Bal.		enter the adjusted balance		enter the adjusted balance				enter the adjusted balance		enter the adjusted balance		enter the adjusted balance

2. Marin Inc. uses a periodic inventory system and reports the following for the month of June.

Date		Explanation		Units		Unit Cost		Total Cost
June 1		Inventory		108		$4		$ 432
12		Purchases		432		6		2,592
23		Purchases		270		8		2,160
30		Inventory		250

(a) Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (For calculation purposes, round average cost to 3 decimal places, e.g. 5.275. Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		Average-Cost
The cost of the ending inventory		$enter cost of the ending inventory under First In First Out in dollars		$enter cost of the ending inventory under Last In First Out in dollars		$enter cost of the ending inventory under average-cost in dollars
The cost of goods sold		$enter cost of goods sold under First In First Out in dollars		$enter cost of goods sold under Last In First Out in dollars		$enter cost of goods sold under average-cost in dollars

3. Headlands Industries uses a periodic inventory system. Its records show the following for the month of May, in which 77 units were sold.

Date		Explanation		Units		Unit Cost		Total Cost
May 1		Inventory		31		$10		$310
15		Purchase		23		11		253
24		Purchase		37		13		481
		Total		91				$1,044

Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round average unit cost to 2 decimal places, e.g. 2.51 and final answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
Ending inventory at May 31		$enter ending inventory at May 31 under First In First Out in dollars		$enter ending inventory at May 31 under Last In First Out in dollars		$enter ending inventory at May 31 under average cost in dollars

4. Windsor Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $335,500. Discussions with the accountant reveal the following.

1.		Pohl shipped goods costing $67,100 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2.		The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on December 27 and were still in transit at year-end.
3.		Pohl received goods costing $30,500 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4.		Pohl shipped goods costing $62,220 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Pohl’s physical inventory.
5.		Pohl received goods costing $51,240 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $275,000.

Determine the correct inventory amount on December 31.

Correct inventory on December 31

$enter the correct inventory amount on December 31 in dollars

Answer 1

Liabilities + Answer to Question 1: Assets Accounts Allowance for Doubtful Receivable Accounts Beg. Bal. $ 756,000 $ 27,000 = Jan. 24 $ 4,644 -$ 4,644 Adj. Bal. $ 751,356 $ 22,356 Stockholders' Equity Retained Earnings + Common Stock + Revenue Expenses = + + + + = + +