Chapter 7 In Class Work Review 1 Wollersheim Co sold 1 000 000 of receivables to a finance company who charged a 5 fee The receivables were sold with recourse and Wollersheim estimates their recourse liability to be 30 000 Assuming Wollersheim retains 7 of the receivables for potential adjustments record the journal entry to reflect this sale 2 Keillor Company s inventory of 1 100 000 at December 31 2024 was based on a physical count of goods priced at cost and before any year end adjustments relating to the following items a Goods shipped from a vendor f o b shipping point on December 24 2024 at an invoice cost of 69 000 to Keillor Company were received on January 4 2025 b The physical count included 29 000 of goods sold to Sakic Corp f o b destination on December 31 2024 The carrier picked up these goods on January 3 2025 c The inventory included 100 000 of goods held by Keillor on consignment from Suzuki Company What amount should Keillor report as inventory on its balance sheet 3 Zimmerman Corp had 1 500 units of their product on hand May 1 2024 costing 21 each Purchases sales of the product during May were as follows Units Purchase May 9 2 000 3 500 Purchase 6 000 Sale Purchase 1 000 17 20 26 Unit Cost 22 00 23 00 24 00 a Assuming perpetual inventory and the FIFO method what is the cost in inventory at May 31 2024 What amount of cost of good sold will Zimmerman Corp report as of May 30 2024 b Assume the same set of facts from question 3 but calculate the ending inventory assuming periodic inventory and the LIFO method 4 Bienvenu Enterprises reported cost of goods sold for 2024 of 1 400 000 and retained earnings of 5 200 000 at December 31 2024 Bienvenu later discovered that its ending inventory at December 31 2023 was overstated by 110 000 Determine the corrected amounts for 2024 cost of goods sold and December 31 2024 retained earnings 5 Trout Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes At January 1 2024 the LIFO reserve has a credit balance of 1 300 000 At December 31 2024 Trout s internal reports indicated that the FIFO inventory balance was 2 900 000 and for external reporting purposes the LIFO inventory balance was 1 500 000 What is the amount of the LIFO reserve and the LIFO effect related to 2024 What is the journal entry needed to record the LIFO effect at December 31 2024