ACC 304 All Assignments ACC 304 All Assignments | Page 19

would cost them $1,500,000 per year. The company estimates that on
average it will incur losses of $1,200,000 per year. During 2014,
$525,000 worth of losses were sustained. How much total expense
and/or loss should be recognized by Sawyer Company for 2014?
14) Greeson Corp. signed a three-month, zero-interest-bearing note on
November 1, 2014 for the purchase of $250,000 of inventory. The face
value of the note was $253,900. Greeson used a "Discount on Note
Payable" account to initially record the note. Assuming that the
discount will be amortized equally over the 3-month period and that
there was no adjusting entry made for November, the adjusting entry
made at December 31, 2012 will include a
15) Presented below is information available for Marley Company.
Current Assets
Cash
$
4,000
Short-term investments
65,000
Accounts receivable
Inventories
61,000
110,000
Prepaid expenses
Total current assets
30,000
$
270,000