Forgo Engines Incorporated sells part number 45G to toy manufacturers around the world. Information about part number 45G is contained in the table below. Fargo uses a LIFO periodic Inventory system.
Number of Units Unit Cost Total Cost
Beginning Inventory 2000 $8.00 $16,000
Purchases 3000 $8.20 $24,600
Purchases 5000 $8.60 $43,000
Total = 10,000 = $83,600
1.Determine the Cost of goods sold and ending inventry cost of part 45G, if 2,000 units remain unsold in inventory at the end of the accounting period.
A.) Cost of goods sold is $66,600 and ending inventory is $17,000
B.) Cost of goods sold is and ending inventory is $17,4000
C.) Cost of goods sold is and ending inventory is $2,000
D.) Cost of goods sold is and ending inventory is $16,000
2.) Using a larger salvage value when calculating depreciation expense for long -term assets.
A.) increase earnings per share
B.) decrease earnings per share
C.) decrease shareholders equity
D.) has no effect on earnings per share
3.) In preparing the financial statements for January, the accountants for Team shirts has compiled the following information: accounts receivable are $5000; the amount estimate to be uncollectibla is 10% of receivables; sales for the month were $43,000; and the balance in the allowance for uncollectible is 10% of reeivables; sales for the month were $43000; and the bad debts expense for January is
A.) $43000
B.) $500
C.) $100
D.) $600
using accounts receivable allowance method the amount of bad debts expense for January is?