e chapter 8Graded Horn E The following information applies to the questions displayed below Web Wizard, Inc has provided information technology services for several years. The company uses the percenage of credt sales method to esumate bed debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts recevable method The company entered imo the following parse/list of transactions duning the frst quarten a During January, the company provided services for $40,000 on credt b On January 31, the company estimated bad debts using 1 percent of credit sales c On February 4, the company collected $20,000 of accounts receivable d On February 15, the company wrote off a $100 account recetvable e. During February, the company provided services for $30,000 on credi r On February 28, the company estimsted bed debts using 1 percent of crecit sales g On March 1, the company loaned $2,400 to an employee who signed 6% note, die n 6 months h On March 15, the company collected $100 on the account wnten off one month earler 1 On March 31, the company accrued inberest earned on the note J On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below) Allowance for Doubtful Accounts has an unadjusted crecit balance of $1.200 Number of Days Unpad Total 0-30 31-60 61-90 Over 90 s 200s 100 $ 80 S 20 Alabema Tounsm Bayside Bungalows Others tnot shown to save space xciting Xcursions $ 400 7000 6800 8400 1000 800 - 400 400 Total Accounts Recevable $18,000 57.300 $8,480 $1020 $1.200 Estimated uncollectible 2% 10% 20% 40% 3. 4 00 points ype here to search
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Related questions
Produce a balance sheet for a company that distinguishes betweencurrent and non- current assets and liabilities.
Create a balance sheet from a trial balance.
Create a comparison of net income based on different methods ofinventory accounting.
Analyze a statement of cash flows and show where each line itemcan be found or
calculated from the other financial statements.
Prepare a full analysis of key financial ratios for a companyand state conclusions about
the financial strength of the company compared to industryratios.
PROJECT SUBMISSION PLAN
Project Part | Description/Requirements of Project Part | Evaluation Criteria |
1 | Title: Creating a Balance Sheet and Evaluating Inventory Task 1: Create a balance sheet from a trial balance for a givenscenario. Make sure you classify the accounts appropriately ascurrent or non-current. Click here to download the trialbalance. |
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AC1420: Project
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Task 2: Perform inventory valuations using LIFO, FIFO, andweighted average methods based on the following information.Explain the impact of each method on the cost of goods sold andending inventory. The company imports microwaves from a supplier in China for theUS market. At the end of the first quarter, 100 microwaves are instock. The company purchased a total of 400 microwaves during thequarter at various prices: January: 100 units @ $75 February: 250 units @ $83
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