1) Apply the retail method to the following company information to calculate the cost
of the ending inventory for the current period.
2) A company ages its accounts receivables to determine its end of period adjustment
for bad debts. At the end of the current year, management estimated that $15,750 of the
accounts receivable balance would be uncollectible. Prior to any year-end adjustments,
the Allowance for Doubtful Accounts had a debit balance of $375. What adjusting entry
should the company make at the end of the current year to record its estimated bad
debts expense?
3) On January 1, the Rodrigues Corporation leased some equipment on a 2-year lease,
paying $15,000 per year each December 31. The lease is considered to be an operating
lease. Prepare the general journal entry to record the first lease payment on December
31.
4) ___________________ activities generally include those transactions and events that
affect long-term assets.
5) Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.
Record the advance ticket sales on April 30. Record the revenue earned for the first
home game played on August 14.
