1) On April 1 of the current year, Troubled Company factored receivables with a carrying value of $85,000 for $60,000 in cash from Scrooge Lenders. The transfer was made without recourse. On April 1, Troubled would A) Credit deferred interest expense for $25,000 B) Credit factored accounts receivable for $85,000. C) Debit discount on liability for $25,000. D) Debit loss on sale of receivables for $25,000 2) Excerpts from Huckabee Company's December 31, 2018 and 2017, financial statements are presented below: 2017 2018 Accounts receivable S 80,000 72,000 72,000 372,000 220,000 58,000 400,000 Merchandise inventory Net sales Cost of goods sold Huckabee's 2018 receivables turnover (rounded) is: A) 3.69 B) 5.00 C) 5.26. D) 3.16. cred 3) On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts What entry would Cherokee make on November 10? A) 7.84 ccounts receivable 7.840 Sales B) 8.000 Accounts receivable 8000 Sales C) 7,840 Accounts receivable ash discounts 8,000 Sales ccounts receivable 8,000 Cash discounts Sales 7.84 4) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n 30. Flores uses the gross method of accounting for cash discounts What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? ash 7.84 Accounts receivable 7,840 B) ash 7.840 Sales discounts 8.00 Accounts receivable 7,840 ash 8,000 Accounts receivable D) 8.000 ash ales discounts Accounts receivable l6t Sales 5) Alison's dress shop buys dresses from McGuirc Manufacturing. Alison purchased dresses from McGuire on ved an invoice with a list price amount of $6,000 and payment terms of 2/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at: A) $5,940. B) $5,880. C) $6,000. D) S6,120 6) Northwest Fur Co. started 2018 with $94,000 of merchandise inventory on merchandise was purchased on account with credit hand. During 2018, $400,000 in were all made f.o.b. shipping point. Northwest paid freight charges of S$7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a terms of 1/15, n/45. All discounts were taken. Purchases perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale? A) $492,500 B) $496,500 C) $490,500. D) $492,550 7) Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition) 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. Ending inventory using the average cost method (rounded) is: A) $650. B) $1,000. C) $707 D) $600. 8) Nu Company reported the following pretax data for its first year of operations 2,800 2,500 880 Net sales Cost of goods available for sale Operating expenses Effective tax rate Ending inventories 40% 820 1,060 If LIFO is elected If FIFO is elected What is Nu's gross profit ratio if it elects LIFO? A) 80%. ) 49%. c) 40%. D)596. 9) Inventory records for Ilerb's Chemicals revealed the followin March 1, 2018, inventory: 1,000 gallons a $7.20-$7.200 Purchases Sales Mar. 5 400 gals Mar. 14 700 gals Mar. 20 500 gals Mar. 26 700 gals 600 gals S 7.25 800 gals 7.30 600 gals S 7.35 Mar. 10 Mar. 16 Mar. 23 Ending inventory assuming LIFO in a periodic inventory system would be A) $5,040 B) $5,055 C) $5,075 D) $5,135 10) On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on $100.000. The ending inventory, valued at year-end costs, and the relative cost index for each of the years is below Ending inventory at year-end costs S 126,000 Year-end Cost Index 1.05 1.10 1.20 2019 2020 153,600 What inventory balance would Badger report on its 12/31/2020 balance sheet? A) $128,000 B) $129,800. C) $153,600 D) None of these answer choices are corredt 11) Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Surgical Rehab Equipment Supplies Fquipment Supplies S 260 S 120 Rchab s 165 162 158 Selling price Cost Replacement cost Costs to sell Normal gross profit ratio 340 25 30% 309% 20% 30% In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at: A) $122. B) $158. C) $162 D) $155 10 12) Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition) 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of: A) $400. B) $(400). C) $0. D) S50. 13) Inventory records for Herb's Chemicals revealed the following March 1, 2018, inventory: 1,000 gallons a $7.20 $7,200 Sales Mar. 5 400 gals Mar. 14 700 gals Mar. 20 500 gals Mar. 26 700 gals ) gals S 7.25 800 gals 7.30 600 gals s 7.35 Mar. 10 Mar. 16 Mar. 23 Ending inventory assuming LIFO in a perpetual inventory system would be A) $4,960. B) $5.060. C) $5,080. D) S5,140 14) Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO Ending Inventory t Base Cost Index Year Cost $ 300,000 320,000 350,000 At Current Cost Year 1.00 1.08 1.20 S 300,000 1/1/2018 12/31/2018 12/31/2019 345,600 420,000 Under the dollar-value LIFO method, the inventory at December 31, 2019, should be A)$357,600. B) $350.000 C) $351,600. D) None of these answer choices are correct