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Homework answers / question archive / Excel document with all the answers, clearly identifying all steps, results, journals and including comments besides each answer
Excel document with all the answers, clearly identifying all steps, results, journals and including comments besides each answer. Roberts owns a dry fruits wholesale company specialized in the sale of peanuts. During the month of September Roberts made the following operations Units Date purchased Price / Unit Units sold* Sale price / Unit 2 September 100 120 6 September 160 130 8 September 190 200 12 September 200 140 18 September 250 210 23 September 100 135 27 September 50 210 Units expressed in bags of 10kg Besides these transactions, the company has had miscellaneous expenses of $350 per month. Robert's accountant recommended that he should use the average cost method in order to determine the cost of the inventory sold but he is not sure about the consequences it may have on his financial situation Relying on your accounting knowledge, Robert asks you the following questions: 1: Calculate the cost of the goods sold for Robert's company regarding the sales occurred in September using as method of valuation the average cost method, FIFO and LIFO, and calculate the balance of the inventory at the end of the month. Explain the calculations. (40 points) 2: In order to compare with the records made by his accountant, Robert asks you to prepare the different journal entries for the purchases and sales mentioned above for each one of the 3 different methods used above. Please take into account that the company uses perpetual inventory. (40 points) 3: Robert is thinking about selling the peanuts on account, and he thinks that the best method to calculate the bad debts allowance is the Income Statement method. His estimation is 1% of sales. Prepare the journal entries that should be done this month.
