Western company begins the year with $50,000 of inventory on hand. During 2018, western purchases additional inventory for $100,000 cash. Sales for the year, all on account, totaled $70,000. A physical count determined the cost of inventory at the end of the year to be $110,000. Assuming western uses a periodic inventory system, the journal entry at the end of the year once the physical count occurs includes which of the following:
Credit purchases $100,000
Debit cost of goods sold $40,000
Debit inventory (ending) $110,000
Credit inventory (beginning) $50,000
The Exam Fun Co. had Accounts Receivable of $100,000 and a credit balance of $2,000 in Allowance for Doubtful Accounts on 12/31/10. The company estimates that 5% of the receivables will not be collected. Which of the following is the correct journal entry for recording the estimate of bad debt expense? A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
B. dr. Bad Debt Expense 5,000 and cr. Accounts Receivable 3,000
C. dr. Bad Debt Expense 5,000 and cr. Allowance for Doubtful Accounts 5,000
D. dr. Bad Debt Expense 7,000 and cr. Allowance for Doubtful Accounts 7,000
Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n ... The December 31, 2018 balance sheet of Wolfe Co. included the following items:7.5% bonds payable due December 31, 2026 $3,000,000Unamortized discount on bonds payable 120,000The bonds were issued on December 31, 2016 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2016, Wolfe retired $600,000 of these bonds at 101 plus accrued interest.
