1.Baines, Inc. had the following information available for itsinventory of Item #565 during 2014:

Beginning inventory	10 units at $61
First purchase	25 units at $63
Second purchase	30 units at $64
Third purchase	15 units at $73

Bainesuses the periodic system and reports that there are 20 units of Item #565 onhand at the end of the year. What is the amount of the inventory at the end ofthe year according to the average cost method?

a. $1,300

b. $1,305

c. $1,415

d. $1,2363

2.Troy, Inc. had the following information available for itsinventory of Item #XQ-211 during 2014:

Beginning inventory	10 units at $60
First purchase	25 units at $63
Second purchase	30 units at $64
Third purchase	10 units at $70

Troy usesthe periodic system and reports that there are 20 units of Item #XQ-211 on handat the end of the year. What is the amount of inventory at the end of the yearaccording to the last-in, first-out method?

a. $1,230

b. $1,220

c. $1,240

d. $1,340

3.Harris Industries had the following information available for itsinventory of Item #FX-112 during 2014:

Beginning inventory	10 units at $50
First purchase	25 units at $53
Second purchase	30 units at $54
Third purchase	15 units at $60

Harrisuses the periodic system and reports that there are 20 units of Item #FX-112 onhand at the end of the year. What is the amount of inventory at the end of theyear according to the first-in, first-out method?

a. $1,030

b. $1,140

c. $1,170

d. $1,060

4. JacksonCompanys Allowance for Doubtful Accounts has a debit balance of $500 at theend of the year (before adjustment).Jackson estimates uncollectible accounts expense at 3% of net sales. Ifnet sales are $600,000, what is the amount of the adjusting entry to record baddebt expense for the year?

a. $18,500

b. $17,500

c. $18,000

d. none of the above

5. Afterits accounts are adjusted and closed at the end of its fiscal year, LarkinCompanys Accounts Receivable has a balance of $450,000 and its Allowance forDoubtful Accounts has a balance of $25,000. What is the net realizable value ofLarkins accounts receivable?

a. $25,000

b. $425,000

c. $450,000

d. $455,000

6. Sarah Lucky is paid $25per hour, with time and a half for all hours worked in excess of 40 during aweek. The following is Sarahs payrolldata for the current week: hours worked, 46; federal income tax withheld, $350; cumulativeearnings for year prior to current week, $99,700; social security tax rate,6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. Whatis Sarahs net pay?

a. $875.00

b. $838.62

c. $857.00

d. $1133.14

7. On March 1, 2014, BaxterIndustries borrowed $40,000 by signing a 30 day, 6% interest bearing note. Whenthe note is paid on March 31, the entry to record the payment should include a

a. debit to Interest Payable$200

b. debit to Interest Expense$200

c. credit to Cash for$40,000

d. credit to Cash for $42400