1. Both the gross amount of receivables and the allowance for doubtful accounts should be reported in the financial statements.

A. true

B. false

Would much appreciate a clear explanation or attached sources.

2. Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:

• Jan. 14: Sales, 375 @ $14
• Jan. 17: Purchases, 250 @ $10
• Jan. 25: Purchases, 250 @ $11
• Jan. 29: Sales, 260 @ $16

Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is $???