1. Costco Wholesale Corporation collects annual non-refundable membership fees from customers. When should Costco recognize revenue for these membership fees? A) Immediately when cash is received because the fees are nonrefundable B) Evenly over the membership year C) Evenly over the current fiscal year D) At the end of the membership year when Costco has discharged its obligation to the customer E) Pro rata over the customer's actual purchasing pattern 2. The 2016 annual report of Leahy Enterprises included the following disclosure: During fiscal 2016, the U.S. dollar strengthened relative to the other principal currencies in which we transact business with the exception of the Indian rupee, in which it weakened compared to the rupee. What effect did these currency fluctuations have on Leahy Enterprises' 2016 consolidated income statement? A) Net profit of the Indian subsidiary will be higher B) Net profit of the Indian subsidiary will be lower C) Net assets of the subsidiaries that report in the other principal currencies will be higher D) Net assets of the subsidiaries that report in the other principal currencies will be lower 3. The 2016 income statements of Leggett &Platt, Inc. reports net sales of $3,749.9 million. The balance sheet reports accounts receivable of $486.6 million at December 31,2016 and S520.2 million at December 31, 2015 The days sales outstanding in 2016 was: A) 49 days B) 10 days C) 44 days D) 8 days 4. At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $50,000 and the allowance for uncollectible accounts is estimated at 16% of gross receivables? (Reminder: Receivables are reported net of the allowance account) A) S6,300 B) $42,000 C) S50,000 D) $28,700