Crabapples Ltd Purchases and Sells Dry Fruit Boxes If Crabapples Sold 3000 Boxes of Dry Fruit During the Summarises

question 15

Multiple Choice

Crabapples Ltd purchases and sells dry fruit boxes.The following information summarises its operating activities for 2017:
$$\begin{array} { | l | l | } \hline \text { Selling expenses } & \$ 9300 \\\hline \text { Inventory on 31 December 2017 } & 33,000 \\\hline \text { Inventory on 1 January 2017 } & 46,300 \\\hline \text { Purchases of inventory } & 33,000 \\\hline \text { Rent for store } & 12,800 \\\hline \text { Sales commissions } & 7400 \\\hline \text { Sales revenue } & 162,000 \\\hline\end{array}$$
If Crabapples sold 3000 boxes of dry fruit during the year,what is the cost per box of dry fruit?

• A) $11.00
• B) $32.10
• C) $43.10
• D) $54.00

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Definitions:

Cash Realizable Value

The amount of money that could be realized from assets if they were sold, after settling any associated costs.

Allowance Method

The allowance method is an accounting technique that enables companies to anticipate and adjust for expected bad debts or credit losses in their financial statements.

Direct Write-off Method

Accounting practice where uncollected receivables are directly written off against income when deemed uncollectible, without using an allowance account.

Bad Debt Expense

A financial accounting concept representing the amount of uncollectible accounts receivable that a company expects to write off as a loss.