18. Wallace Cleaver, Inc. uses the percentage of sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000 and management estimates 3% will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $1,900. The balance in the allowance for uncollectibles for Wallace Cleaver, Inc. at year-end will be

A. $1,900

B. $5,700

C. $58,100

D. $60,000

E. $61,900

19. In December, 20X4, a US company purchased merchandise from an Israeli firm for 100,000 shekels. The exchange rates for the shekel were $.26 when the purchase was made, $.245 at year end, and $.24 when the shekels are paid in 20X5. What are the US exchange rate gains/losses?

A. 20X4 $1,000 gain; 20X5 $1,000 gain

B. 20X4 $1,500 gain; 20X5 $500 gain

C. 20X4 $1,000 loss; 20X5 $1,000 loss

D. 20X4 $1,000 loss; 20X5 $2,000 loss

E. 20X4 $1,500 loss; 20X5 $500 loss

20 - 21. November 1st Beginning inventory 20 units @ $40; November 6th Purchases 60 units @ $42; November 17th Sales 50 units @ $80; November 23rd Purchases 40 units @ $46; November 30th Sales 28 units @ $85. What is ending inventory on a periodic FIFO basis?

A. $1,724

B. $1,772

C. $1,806

D. $1,884

E. $1,924

21. November 1st Beginning inventory 20 units @ $40; November 6th Purchases 60 units @ $42; November 17th Sales 50 units @ $80; November 23rd Purchases 40 units @ $46; November 30th Sales 28 units @ $85. What is ending inventory on a perpetual LIFO basis?

A. $1,724

B. $1,772

C. $1,806

D. $1,884

E. $1,924

22. A firm using FIFO had a beginning inventory of $44,000, an ending inventory of $56,000, and gross profit of $500,000. If it had used LIFO, its beginning inventory would have been $22,000, its ending inventory would have been $18,000, and its gross profit would have been

A. $484,000

B. $488,000

C. $492,000

D. $508,000

E. $516,000