Superb Professors

1). Selected data pertaining to Jessica’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 Jessica’s average days’ 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 Truck’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 April’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 April’s ending inventory.4).The Pipeline Company recently traded in a pick-up truck or a newer model truck. The old truck’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

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