ACT

Week 4

Critical Thinking: Cost of Ending Inventory (90 points)

During April, Leary Company sold 1000 units of Product Q. Product Q’s beginning inventory and purchases during the month are shown below. (Assume the periodic inventory system is used.)

April 1

Beginning inventory

200 units @ $1

April 5

Purchases

200 units @ $2

April 10

Purchases

200 units @ $3

April 15

Purchases

200 units @ $4

April 20

Purchase

200 units @ $5

April 25

Purchase

200 units @ $6

Compute the cost of the ending inventory under each of three methods: (a) average-cost, (b) LIFO, and (c) FIFO. Explain how you calculated each answer.

To submit your assignment, create an Excel spreadsheet using the examples from the textbook linked to the Module 4 Critical Thinking instructions in the Assignments page of your Blackboard class to configure your spreadsheet. Explain how you calculated each answer and include your explanations in the spreadsheet. To insert explanations, right-click any item (cell) in the desired field and click Insert Comment to insert your explanation. 

Week 5

Critical Thinking: Uncollectible Accounts (85 points)

The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of uncollectible accounts receivable.

Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.

Create an Excel spreadsheet to submit your assignment.

I need these two assignments done