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Week 2 Quiz All Questions Details given below ( Please Check )
Question 1
On December 30 , 2004 , Astor Corp . sold merchandise for $ 75,000 to Day Co . The terms of the sale were net 30 , FOB shipping point . The merchandise was shipped on December 31 , 2004 , and arrived at Day on January 5 , 2005 . Due to a clerical error , the sale was not recorded until January 2005 and the merchandise , sold at a 25 % markup , was included in Astor ' s inventory at December 31 , 2004 . As a result , Astor ' s cost of goods sold for the year ended December 31 , 2004 , was
Question 2
Foster Co . adjusted its allowance for uncollectible accounts at year end . The general ledger balances for the accounts receivable and the related allowance account were $ 1,000,000 and $ 40,000 , respectively . Foster uses the percentage-ofreceivables method to estimate its allowance for uncollectible accounts . Accounts receivable were estimated to be 5 % uncollectible . What amount should Foster record as an