26. A company had inventory on November 1, of 5 units at a cost of $10 each. On November 2, they purchased 19 units at $12 each. On November 6, they purchased 15 units at $15 each. On November 8, 17 units were sold for $45 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

a. $254 b. $230 c. $247 d. $264 e. $309

27. Grays Company has inventory of 15 units at a cost of $10 each on August 1. On August 3, it purchased 25 units at $9 each. 17 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 17 units were sold?

a. $75

b. $174

c. $255

d. $168

e. $172

28. Santana Rey receives the March bank statement for Business Solutions on April 11, 2016. The March 31 bank statement shows an ending cash balance of $66,866. A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. S. Rey notices that the bank erroneously cleared a $510 check against her account in March that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Business Systems. On March 25, the bank issued a $46 debit memorandum for the safety deposit box that Business Solutions agreed to rent from the bank beginning March 25. On March 26, the bank issued a $102 debit memorandum for printed checks that Business Solutions ordered from the bank. On March 31, the bank issued a credit memorandum for $39 interest earned on Business Solutions checking account for the month of March. S. Rey notices that the check she issued for $123 on March 31, 2016, has not yet cleared the bank. S. Rey verifies that all deposits made in March do appear on the March bank statement. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,362 as of March 31 (prior to any reconciliation). a. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2016. b. Prepare any necessary adjusting entries. Use Miscellaneous Expenses, No. 677, for any bank charges. Use Interest Revenue, No. 404, for any interest earned on the checking account for the month of March.

29. Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $60,000 during the first three months of 2016, and that the Accounts Receivable balance on March 31, 2016, is $22,267.

a. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 1% of total revenues on March 31, 2016.

b. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2016. 30. Peavey Enterprises