Question: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $494,000. In the past, 2 percent of sales have proven uncollectible. An aging of Accounts Receivable accounts results in an estimate of $13,500 of Uncollectible Accounts. Using the percentage of net sales method, calculate the Allowance for Uncollectible Accounts balance after adjustment. The Wrapping Department's output during the period consists of 17,000 units completed and transferred out, and 900 units in ending work in process that were 75% complete as to materials and conversion costs. Beginning inventory was 1,200 units that were 30% complete as to materials and conversion costs. Under the FIFO method, what are the equivalent units of production for materials? A. 18,035 B. 18,515 C. 17,315 D. 17,675
Question: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for Uncollectible Accounts has a credit balance of $1,000. Net sales for the year were $494,000. In the past, 2 percent of sales have proven uncollectible. An aging of Accounts Receivable accounts results in an estimate of $13,500 of Uncollectible Accounts. Using the percentage of net sales method, calculate the Allowance for Uncollectible Accounts balance after adjustment. The Wrapping Department's output during the period consists of 17,000 units completed and transferred out, and 900 units in ending work in process that were 75% complete as to materials and conversion costs. Beginning inventory was 1,200 units that were 30% complete as to materials and conversion costs. Under the FIFO method, what are the equivalent units of production for materials? A. 18,035 B. 18,515 C. 17,315 D. 17,675
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
The general ledger account for Accounts Receivable
shows a debit balance of $50,000. Allowance for
Uncollectible Accounts has a credit balance of $1,000.
Net sales for the year were $494,000. In the past, 2
percent of sales have proven uncollectible. An aging
of Accounts Receivable accounts results in an
estimate of $13,500 of Uncollectible Accounts. Using
the percentage of net sales method, calculate the
Allowance for Uncollectible Accounts balance after
adjustment. The Wrapping Department's output
during the period consists of 17,000 units completed
and transferred out, and 900 units in ending work in
process that were 75% complete as to materials and
conversion costs. Beginning inventory was 1,200
units that were 30% complete as to materials and
conversion costs. Under the FIFO method, what are
the equivalent units of production for materials?
A. 18,035
B. 18,515
C. 17,315
D. 17,675
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