Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. case study as at 31 december 2018, abc limited ("a

Case Study As at 31 December 2018, ABC Limited ("ABC") had a net balance of...

70.2K

Verified Solution

Question

Accounting

image
Case Study As at 31 December 2018, ABC Limited ("ABC") had a net balance of accounts receivable of $9,000, representing a gross amount of $9,100 due from a customer, BBA Limited ("BBA"), less the allowance for doubtful accounts of $100. Closing inventory of $3,000 was held as at 31 December 2018 (being 100 units at $30 each). Market value of the inventory was estimated to be well-above the costs. On 5 January 2019, ABC purchased 300 units of inventories at $32 each and paid by cash. On 10 January 2019, ABC sold 150 units of goods to BBA for a gross price of $6,000 in total. This was a credit sale with terms 2/10, 9/30. ABC adopts gross method in accounting for cash discount. On 25 January 2019, ABC collected $15,100 from BBA for all the amounts due. Question For the month ended 31 January 2019, how much "cost of goods sold" shall be reported if FIFO is adopted by ABC

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students