ACCT216 – Week 3

1. Classify the following items as (a) an addition to the bank balance
, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance:_____ $20 in service charges
_____ A $300 check deposited that was returned NSF_____ An outstanding check that you wrote for $2,000_____ A deposit in transit of $5,500_____ Bank Error: the bank credited your account for a deposit made by another customer2. During 2011, Jimmy Enterprises completed the following transactions:a. Sales revenue on account, $550,000.b. Collections on account, $325,000c. Write-offs of uncollectible, $13,000d. Uncollectible account expense
, 5% of sales revenueRequired:1. Prepare the journal entries for the above transactions. 2. Suppose Robotics, Inc.’s inventory records for a particular item indicated the following transactions in September:September 1 Beginning Inventory 6 units @ $29September 10 Purchase 19 units @ $32September 22 Purchase 12 units @ $30September 27 Purchase 4 units @ $31Required: The company sold 22 units on September 30. Compute the ending inventory and cost of goods
sold using each of the following methods:1. LIFO2. FIFO3. Average Cost