1. Hobbes Antiques has 4 lion statues in its inventory, purchased at the following prices in the following order - $700, $800, $820 and $890. Hobbes uses the specifie identification

inventory cost flow method. During December, it sells the third and fourth lion statues for $1,100 each. Gross profit for December will be

$510.

$1,710.

O

$1,690.

0

$490.

2.

An error in the physical count of goods on hand at the end of the current period resulted in a $3,000 overstatement of the ending inventory. The effect of this error in the next

period is to

O

overstate beginning inventory.

O

overstate net income.

O

understate beginning inventory.

O

overstate gross profit.

3. After months of trying to collect an amount due from a residential customer, PS Property Maintenance decides to write off the $225 accounts receivable balance. The entry

made by PS to record the write-off will include a credit to

O

Accounts Receivable.

O

Cash,

O

Allowance for Doubtful Accounts.

O

Bad Debt Expense,