QUESTION:1 Presented is information related to Rogers Co. for the month of January 2010. Ending inventory per perpetual records $21,520 Ending inventory actually on hand 21,000 Cost of goods sold Freight out 210,000 7,068 Insurance expense 12,300 Rent expense 20,500 Salary expense 62,100 Sales discounts 10,500 Sales returns and allowances 13,700 Sales 350,000 Instructions: (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) QUESTION:2 ad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of $12,000 and an ending balance of $10,000. What is the book-tax difference associated with bad debt expense? A. $2,000 favorable. B. $2,000 unfavorable. C. $7,000 favorable. D. $7,000 unfavorable.
QUESTION:1 Presented is information related to Rogers Co. for the month of January 2010. Ending inventory per perpetual records $21,520 Ending inventory actually on hand 21,000 Cost of goods sold Freight out 210,000 7,068 Insurance expense 12,300 Rent expense 20,500 Salary expense 62,100 Sales discounts 10,500 Sales returns and allowances 13,700 Sales 350,000 Instructions: (a) Prepare the necessary adjusting entry for inventory. (b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) QUESTION:2 ad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of $12,000 and an ending balance of $10,000. What is the book-tax difference associated with bad debt expense? A. $2,000 favorable. B. $2,000 unfavorable. C. $7,000 favorable. D. $7,000 unfavorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:QUESTION:1
Presented is information related to Rogers Co. for the month of January 2010.
Ending inventory per perpetual records $21,520
Ending inventory actually on hand
21,000
Cost of goods sold
Freight out
210,000
7,068
Insurance expense
12,300
Rent expense
20,500
Salary expense
62,100
Sales discounts
10,500
Sales returns and allowances
13,700
Sales
350,000
Instructions:
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts
from largest to smallest eg 10, 5, 3, 2.)
QUESTION:2
ad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of
$12,000 and an ending balance of $10,000. What is the book-tax difference associated with
bad debt expense?
A. $2,000 favorable.
B. $2,000 unfavorable.
C. $7,000 favorable.
D. $7,000 unfavorable.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education