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1. A company reports the following amounts in its year-end balance…

1. A company reports the following amounts in its year-end balance sheet: Accounts Receivable of $42,000; Accounts Payable of $34,000; Accumulated Depreciation of $40,000; Buildings of $180,000; Cash of $25,000; Equipment of $90,000; Prepaid Insurance of $10,000; Salaries Payable of $22,000; Office Supplies of $6,000; and Unearned Revenue of $16,000. The dollar amount of current assets that will not be converted into cash totals —— Please add calculations.

 

2. Srinivasan, Inc., sells $600,000 worth of goods on account in March and estimates that 2% of these credit sales will ultimately prove to be uncollectible. The cost of the items sold was $400,000. As a result, total assets will——–  (increase/decrease) by $—— in March. Please add calculations.

 

3. Food Service Distributors, Inc., accepts a 90-day, 8% note receivable for $75,000 on September 1 in exchange for an account receivable due from Fresh Food, Inc. Food Service Distributors prepares financial statements (and makes adjusting entries) quarterly. On the date the note is collected, Interest Revenue is credited for ——-Please add calculations.