# ACCT 310-Selected data pertaining to Jessicaâs Jewels

1). Selected data pertaining to Jessicaâs Jewels for the calendar year 2015 is as follows:Net cash sales\$6,000Cost of goods sold24,000Inventory at 12/31/146,000Purchases20,000Accounts receivable 12/31/1424,000Accounts receivable 12/31/1522,000Calculate Jessicaâs average daysâ sales in inventory. Round your answer to the nearest decimal point.2). Monster Trucks factored \$600,000 of accounts receivable to Little Cars on October 1, 2015. Control was surrendered by Monster Trucks. Little Cars accepted the receivables subject to recourse for nonpayment, assesses a fee of 3% of total accounts receivable, and retains a holdback equal to 2% of the total accounts receivable factored. The fair value of the recourse obligation is \$9,000. What is the journal entry to record the sale of Monster Truckâs accounts receivable?3). The following information is taken from the inventory records of the Britain Company:Beginning Inventory, 4/1/2015 7,000 units @ \$22.00Purchases: 4/5 6,000 units @ \$22.65 4/26 9,000 units @ \$24.00Sales: 4/11 5,000 units 4/28 8,000 units9,000 units were on hand at the end of April.[if !supportLists](a) [endif]Assume that Britain Company uses a periodic inventory system and employs the average cost method, determine cost of goods sold for April and Aprilâs ending inventory.[if !supportLists](b) [endif] Assume that Britain Company uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for April and Aprilâs ending inventory.4).The Pipeline Company recently traded in a pick-up truck or a newer model truck. The old truckâs book value was \$1,000 (original cost of \$13,000 less \$12,000 in accumulated depreciation) and its fair value was \$800. Pipeline paid \$14,000 to complete the exchange. The exchange has commercial substance.[if !supportLists](a) [endif]Prepare the journal entry to record the exchange.[if !supportLists](b) [endif]Assume the same facts in (a) above except that the fair value of the old truck is \$1,500. Prepare the journal entry to record the exchange.5). On January 1, 2013, the Farmington Company purchased a packaging and labeling machine. Farmington paid \$25,000 down and signed a noninterest bearing note requiring six annual installments of \$10,000 to be paid on each December 31 beginning December 31, 2013. The fair value of the machine is not determinable. An interest rate of 8% properly reflects the time value of money in this situation.[if !supportLists](a) [endif]Prepare the journal entry to record the acquisition of the machine. Round computations to the nearest dollar.[if !supportLists](b) [endif]Prepare the journal entry to record the first payment on December 31, 2013. Round computations to the nearest dollar.[if !supportLists](c) [endif]Prepare the journal entry to record the second payment on December 31, 2014. Round computations to the nearest dollar.6). The records of Eric Company showed the following pre-adjustment information on December 31, 2011:Net sales (80% on credit) \$350,000Accounts receivable \$160,000Allowance for doubtful accounts \$4,100 (debit balance)Prepare journal entries to record the estimates for bad debt expense assuming:[if !supportLists](a) [endif]Bad debts are estimated to be 4% of credit sales.[if !supportLists](b) [endif]Bad debts are estimated to be 3% of net sales.[if !supportLists](c) [endif]An aging schedule determines that uncollectible accounts should be \$13,000.EndFragment