10. Sally collects a nonrefundable up-front fee of $120 when a new customer signs up for a 127 month contract for services. A monthly fee of $40 is also assessed for each customer. How much revenue does Sally record on the date the contract is signed? a. $160 b. $120 c. $50 d. $0 11. Lawson Manufacturing Company has the following account balances at year end: Office supplies $ 4,000 Raw materials 27,000 Work-in-process 59,000 Finished goods 109,000 Prepaid insurance 6,000 What amount should Lawson report as inventories in its balance sheet? a. $109,000 b. $113,000 c. $195,000 d. $199,000 12. Dolan Corporation had a gross profit of $200,000, total purchases of $810,000, and an ending inventory of $360,000 in its first year of operations as a retailer. Dolan's sales in its first year must have been: a. $450,000 b. $560,000 c. $650,000 d. $970,000 DOOS