Cecily Cedric is a toy manufacturer producing toys that are shipped to various retail customers upon receipt of their purchase orders. Sales are billed aftershipment. The company estimates that approximately 2 per cent of credit sales prove to be uncollectable. Cecily Cedric entered into the table-top game market andoffer a promotion on their latest game called the FoxBox1. Transactions for the year 2022 were as follows:1. 12,000 FoxBox1 were manufactured at a cost of $30 each.2. 10,000 FoxBox1were sold for $50 each.3. Cash was collected on 6,000 of the FoxBox1 sold.What was the reported profit for the year 2022 if revenue was recognised at the point of sale?a. $0O b. $190,000c. $140,000O d. $120,000O e. $320,000 At year end Othello Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2 000. It was decided to write off as irrecoverablethe debt of Hamlet Ltd totalling $3 500. It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable. What wasthe journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Hamlet Ltd?O a.DR Bad debts expense $5 150CR Allowance for doubtful debts $5 150b. DR Allowance for doubtful debts $3 500CR Accounts receivable$3 500O c. DR Cash$3 500CR Accounts receivable $3 500O d. DR Bad debts expense $5 500CR Allowance for doubtful debts $5 500O e. DR Bad debts expense $4 000CR Allowance for doubtful debts $4 000

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Cecily Cedric is a toy manufacturer producing toys that are shipped to various retail customers upon receipt of their purchase orders. Sales are billed after shipment. The company estimates that approximately 2 per cent of credit sales prove to be uncollectable. Cecily Cedric entered into the table-top game market and offer a promotion on their latest game called the FoxBox1. Transactions for the year 2022 were as follows: 1. 12,000 FoxBox1 were manufactured at a cost of $30 each. 2. 10,000 FoxBox1were sold for $50 each. 3. Cash was collected on 6,000 of the FoxBox1 sold. What was the reported profit for the year 2022 if revenue was recognised at the point of sale? O a. $0 O b. $190,000 O c. $140,000 O d. $120,000 O e. $320,000

Cecily Cedric is a toy manufacturer producing toys that are shipped to various retail customers upon receipt of their purchase orders. Sales are billed after shipment. The company estimates that approximately 2 per cent of credit sales prove to be uncollectable. Cecily Cedric entered into the table-top game market and offer a promotion on their latest game called the FoxBox1. Transactions for the year 2022 were as follows: 1. 12,000 FoxBox1 were manufactured at a cost of $30 each. 2. 10,000 FoxBox1were sold for $50 each. 3. Cash was collected on 6,000 of the FoxBox1 sold. What was the reported profit for the year 2022 if revenue was recognised at the point of sale? O a. $0 O b. $190,000 O c. $140,000 O d. $120,000 O e. $320,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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