PROBLEM 1

8) Carrying Value 360,000.00

Net Realizable Value (400000*85%) 340,000.00
Allowance for Inventory writedown 20,000.00

9) Inventory, Beg 230,000.00

Purchases 2,445,000.00
Less: Purchase returns (50000+80000) - 130,000.00
Purchase Discount - 200,000.00
TGAS 2,345,000.00
Less: Inventory End 360,000.00
Add: Inventory Loss (20000-10000) 10,000.00
Cost of Goods Sold 1,995,000.00

10) LC or LCNRV 340,000.00

PROBLEM 2

DATE COLLECTION INTEREST PRINCIPAL CARRYING VALUE

02-Nov 600,000.00
Nov-30 320,000.00 6,000.00 314,000.00 286,000.00
Dec-31 400,000.00 2,860.00 397,140.00 - 111,140.00

11) Assigned Receivables 800,000.00

Less: Receivables Collected 320,000.00
Remaining Assigned Receivables 480,000.00
Less: Carrying Value of Liability 286,000.00
Equity on the Assigned 194,000.00

12) Unassigned portion on November 2 200,000.00

Add: Credit Sales 550,000.00
Add: Uncollected Assigned Accounts 80,000.00
Total 830,000.00
Less: Collections 300,000.00
Less: Sales Returns 2,000.00
Accounts Receivable - Unassigned 528,000.00
PROBLEM 3
14) Annual Payments 100,000.00
Times: Present Value Factor 6.25
Notes Receivable 625,000.00

PROBLEM 4
 Beginning Age Quantity Beginning Price Total
2 y/o 1,050.00 4,000.00 4,200,000.00
1 y/o 150.00 3,000.00 450,000.00
1y/o July 375.00 3,000.00 1,125,000.00 5,775,000.00

Beginning Age Quantity Ending Price Total

2 y/o 1,050.00 4,500.00 4,725,000.00
1 y/o 150.00 3,200.00 480,000.00
1y/o July 375.00 3,200.00 1,200,000.00 6,405,000.00

Ending Age Quantity Ending Price Total

3 y/o 1,050.00 5,000.00 5,250,000.00
2 y/o 150.00 4,500.00 675,000.00
1.5 y/o 375.00 3,600.00 1,350,000.00 7,275,000.00

PROBLEM 5

18) Invoice Price 150,000.00

Less: Purchase Discount 3,000.00
Add: Freight In 500.00
Net Purchases 147,500.00

PROBLEM 6
COST RETAIL
Inventory, Jan 1 820,000.00 1,262,800.00
Net Purchases 2,280,000.00 3,607,200.00
Net Mark-ups 450,000.00
Net Mark-downs 320,000.00
Total 3,100,000.00 5,000,000.00 62%
Less: COGS at Retail
Sales 4,350,000.00
Less: Sales Returns 300,000.00
Net Sales 4,050,000.00
Add: Employee Discount 100,000.00
Normal Shrinkage 50,000.00 4,200,000.00
Ending Inventory at Retail 800,000.00 19)
Times: Average Cost Ratio 62%
Ending Inventory at Cost 496,000.00 20)
13)
 630,000.00 Price Change

870,000.00 Physical Change

Ednding Balance