11. Tehran Ltd, uses FIFO to cost its inventory. The following information is available for Tehran's Inventory of product # 101: Beginning inventory: 120 units @ $3.14 per unit March 1: Purchase of 250 units @ $3.50 per unit April 10 Sale of 100 units @ $5.10 per unit Assuming Tehran uses the periodic inventory system, the entry to account for the March 1 purchase is: debit Inventory and credit Accounts Payable, $875. b. debit Purchases and credit Accounts Payable, $875. debit Accounts Payable and credit Purchases, $875 d. debit Accounts Payable and credit Inventory, $875. 8. c. 12. Revenue is defined as possession of economic resources. inflow of economic benefits resulting from ordinary activities. increases in economic resources from incidental transactions. residual interest in economic resources of an entity. a. b. C. d a b. c. d. 13. Concessionary or abnormal sale terms may indicate that no sale has taken place at all. create additional recognition and measurement uncertainty. reflect that risks and reward has not yet passed to the customer. all of the above. 14. At the time of contract signing, a contract liability is recorded. a contract asset is recorded. . no journal entry is recorded. d. a note to the financial statements must be included. a. b. 15. In its first year of operations as a retailer, Dudley Ltd. reported a gross profit of $121,000, total purchases of $150,000, and an ending inventory of $60.000. Theretore, Dudley's sales in its first year must have been $61.000. $90,000 $210,000 $211.000 c d