12. Misty Company had 20,000 units of ending inventory that were recorded at their cost of $5.00 per unit using the first-in, first-out (FIFO) method. The current replacement cost is $4.25 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule? a. $142,500 b. $85,000 c. $100,000 d. $120,000 13 Under the direct write-off method, the entry to write off an uncollectible account will include a. a debit to the customer's Account Receivable b a debit to Bad Debts Expense account c. a credit to the Allowance for Bad Debts d. No entry is made to write off uncollectible accounts 14. Hastings Company has purchased a group of assets for $15,000. The assets and their relative market values are listed below. Land: $6,500 Equipment: $2,000 Building: $9,000 Which of the following amounts would be debited to the Land account? a $7,714 b. $1,962 c. $1,714 d. $5,571 15 A $30,000, three-month, 7% note payable was issued on December 1, 2020. What is the amount of accrued interest on December 31, 2020? $275 b. $175 d $267 a. c. $133