Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records show the following data for thecurrent year:Inventory beginning of year per General Ledger - 36,150Inventory end of year unadjusted per General Ledger - $35,000Purchases during the year - $60,000Physical inventory count end of year - 43,300Accounts Payable invoices dated December for inventory purchases ordered but in transit at year end - $6,000Trade terms with suppliers - Net 30 days, FOB destinationRequired 1: Assuming no other transaction happened, what value will show on Penultimate's year end balance sheet for inventory? $Required 2: Assuming no other transaction happened, what value will show on Ultimate's Income Statement as the Cost of GoodsSold?$Required 3: Assuming no other transaction happened, what was the amount of Merchandise Available For Sale? $ Choose the term that best matches the following description: Bases bad debt expense on the historical perspective of credit sales that result in baddebtsMultiple ChoiceNone of the other alternatives are correctAllowance MethodPercentage of Credit Sales MethodBad debt ExpenseSales Returns and Allowances.

Name: Penultimate Company uses a perpetual inventory system and has a Decem
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Description: Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records show the following data for thecurrent year:Inventory beginning of year per General Ledger - 36,150Inventory end of year unadjusted per General Ledger

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Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records show the following data for the current year: Inventory beginning of year per General Ledger - 36,150 Inventory end of year unadjusted per General Ledger - $35,000 Purchases during the year - $60,000 Physical inventory count end of year - 43,300 Accounts Payable invoices dated December for inventory purchases ordered but in transit at year end - $6,000 Trade terms with suppliers - Net 30 days, FOB destination

Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records show the following data for the current year: Inventory beginning of year per General Ledger - 36,150 Inventory end of year unadjusted per General Ledger - $35,000 Purchases during the year - $60,000 Physical inventory count end of year - 43,300 Accounts Payable invoices dated December for inventory purchases ordered but in transit at year end - $6,000 Trade terms with suppliers - Net 30 days, FOB destination

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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