1.Which of the following does not reduce the balance in accounts receivable?

Multiple Choice

• a.Returns on credit sales.

• b.Collections from customers.

• c.Recognizing bad debts expense.

• d.Write-offs.

2.Inventory records for Herb's Chemicals revealed the following:

March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

Purchases:							Sales:
Mar. 10	600	gals	@	$	7.25		Mar. 5	400	gals
Mar. 16	800	gals	@	$	7.30		Mar. 14	700	gals
Mar. 23	600	gals	@	$	7.35		Mar. 20	500	gals
							Mar. 26	700	gals

Ending inventory assuming LIFO in a periodic inventory system would be:

Multiple Choice

• $5,040.

• $5,055.

• $5,075.

• $5,135.

3.

Nu Company reported the following pretax data for its first year of operations.

Net sales		2,800
Cost of goods available for sale		2,500
Operating expenses		880
Effective tax rate		25	%
Ending inventories:
If LIFO is elected		820
If FIFO is elected		1,060

What is Nu's net income if it elects FIFO?

Multiple Choice

• $480.

• $360.

• $1,360.

• $180.