1. On 1 January, Five Star Company had a $10,750 credit balance in the Allowance for Impairment. The Company used the Statement of Financial Position Approach in estimating uncollectible accounts. At the end of January, the aging of the accounts receivable indicated the estimated uncollectible portion to be $24,000, the impairment loss of receivable for the month was A. $24,000. B. $13,250. C. $34,750 D. $10,750. 2. If a company capitalizes costs that should be expensed, how is its income statement for current period impacted? A. Net income will be lower than it should be. B. Revenues will be lower than they should be. C. Expenses will be lower than they should be. D. Assets will be lower than they should be. 3. In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows A. Beginning inventory + purchases - net sales B. Beginning inventory + purchases - ending inventory C. Ending inventory + purchases - net sales D. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account 4. In a perpetual inventory system, two entries usually are made to record each sales transaction. The purposes of these entries are best described as follows. A. One entry recognizes the sales revenue, and the other recognizes the cost of goods sold. B. One entry records the purchase of the merchandise, and the other records the sale. C. One entry records the cost of goods sold, and the other reduces the balance in the Inventory account. D. One entry updates the general ledger, and the other updates the subsidiary ledgers