ACCY midterm 2

Question 1

Cost of goods sold equation

Answer 1

COGS = beginning inventory + purchases - ending inventory

Question 2

Ending inventory equation

Answer 2

ending inventory = beginning inventory + purchases - COGS

Question 3

Bad debt expense equation

Answer 3

bad debt expense = ending balance of allowance for doubtful accounts- beginning balance of allowance for doubtful accounts + write-offs

Question 3

book value

Answer 3

represents the value of the assets on the company’s books at that point in time

book value = original cost - accumulated depreciation

Question 4

cost of lot equation

Answer 4

(fair value of lot/total fair value of all lots) x total purchase price