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Longchamp Company uses the perpetual inventory system and had the following purchases and sales during March. Instructions Using the inventory and sales data above, calculate the value assigned to cost of goods sold in March and to the ending inventory at March 31 using (a) FIFO and (b) LIFO. SOAL 2 (FRAUD AND INTERNAL CONTROL) On October 1, 2020, Hillary Company establishes an imprest petty cash fund by issuing a check for $200 to Jeremy, the custodian of the petty cash fund. On October 31,2020 , Jeremy submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $47 cash in the fund: Instructions Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31 . SOAL 3 (ACCOUNTING FOR RECEIVABLE) Katty Furniture Store has credit sales of $400,000 in 2020 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2020, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $4,000 will prove to be uncollectible. On March 4, 2021, the credit manager authorizes a write-off of the $1,000 balance owed by Newman. Instructions (a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2020. (b) Show the statement of financial position presentation of accounts receivable on December 31,2020. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $140,000 and the balance of Allowance for Doubtful Accounts is a credit of $2,000. Make the appropriate entry to record the write-off of the Newman account. Also show the statement of financial position presentation of accounts receivable before and after the write-off. SOAL 4 (PLANT ASSET, NATURAL RESOURCEAND INTAGIBLE ASSTE) Gurney Company purchased a new machine for $400,000. It is estimated that the machine will have a $40,000 residual value at the end of its 5-year useful service life. The double-declining-balance method of depreciation will be used. Instructions Prepare a depreciation schedule which shows the annual depreciation expense on the machine for its 5-year life. SOAL 5 (DISPOSAL OF PLAN ASSETS) Presented below are selected transactions for Curtin Company for 2020. Jan. 1 Received $3,000 scrap value on retirement of machinery that was purchased on January 1, 2009. The machine cost $90,000 on that date, and had a useful life of 10 years with no residual value. April 30 Sold a machine for $31,000 that was purchased on January 1, 2017. The machine cost $90,000, and had a useful life of 5 years with no residual value. Dec. 31 Discarded a business automobile that was purchased on April 1, 2016. The car cost $42,000 and was depreciated on a 5 -year useful life with a residual value of $2,000. Instructions Journalize all entries required as a result of the above transactions. Curtin Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2019

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