1. The following information pertains to Julia & Company: March 1 Beginning inventory = 26 units @ $5.30 March 3 Purchased 14 units @ 4.10 March 9 Sold 26 units @ 8.40 What is the cost of goods sold for Julia & Company assuming it uses LIFO? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)

$107

$121

$138

$110

The following two items were in Leo's Breads inventory at the end of the year on December 31.

	# of Units	Unit Cost	Unit Replacement Cost
Italian Bread	20	$1.50	$1.60
Rye Bread	10	$2.00	$1.80

If Leo,s Breads applies LCM [lower-of-cost or market (net realizable value)] to its inventory on an item-by-item basis, at what total amount should it report its bread inventory on its 12/31 balance sheet?

$48

$52

$54

$50

2. On January 28 Wild's Flowers purchased from a supplier 30 vases for $10 each ($300) and also paid $30 of freight under terms 2/10, n/30, FOB shipping point.

The vases will be sold at its new flower shop. No other vases were in stock.

Wild's Flowers uses a perpetual inventory system and prepares month financial statements. Which one of the following is correct (true) with respect to the recording of the purchases of the vases on January 28?

If the vases are sold within 30 days, Wild's Flowers can take a discount of 2% - 10% depending upon when the vases were sold.

Inventory is credited.

If Wild's Flowers pays the bill for the vases within 30 days, they can take a 2% discount.

COGS is not recorded (and inventory is recorded) because the matching principle must be followed.

2.5: On December 31, the unadjusted trial balance of Lees Coffee Distributor contains the following:

	Debit	Credit
Accounts Receivable	240,000
Allowance for Doubtful Accounts		3,000
Cash Sales		1,500,000
Credit Sales		950,000

An aging analysis of the A/R subsidiary ledger indicated that $14,650 of the $240,000 accounts receivable balance would be uncollectible. 3.Which one of the following statements is correct if the A/R aging method (% of receivables approach) is used with respect to making the AJE at the end of the year, December 31?

The net A/R reported on the balance sheet would be $222,350

Total "Sales" reported on the income statement = $950,000

The AJE would include a debit to "bad debt expense" for $11,650

Write-off percentages used in an aging analysis are normally gotten from a trade magazine related to the industry in which a company operates [e.g. a coffee growers/distributors magazine in this problem]

4. Wild's Flowers sells $400 of flowers for a wedding and the customer pays with a bank credit card (e.g., VISA). Wild's Flowers must pay 3% to the credit card company for credit card transactions. Which one of the following statement is correct (true) with respect to the recording of this sale on the books of Wild's Flowers?

Sales is credited $388.

Sales is debited $400.

Service Fee Expense is debited $12.

Sales Discounts is debited $12.