26. Which inventory costing method uses the oldest cost for cost of goods sold on the income statement and the newest cost for inventory on the balance sheet? A. LIFO B. Specific identification C. FIFO D. Weighted average 24. Which of the following is deducted from the bank balance on a bank reconciliation A. Deposits in transit B. Outstanding checks C. EFT received from customers D. Bank service charge 25. Before reconciling its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $5,250. The bank reconciliation for the month contained the following items: Deposits in transit Outstanding checks Interest earned NSF check returned to bank Bank service charge $750 465 20 100 Given the above information, what up-to-date ending cash balance should Lauren report at month-end? A. $4,500 B. $4,820 C. $5,160 D. $5,590 31. On October 1, 2018, Bill Burns borrowed $170,000 from the New National Bank on a 6-month, 6% note. Assuming no interest has been recorded yet, what is the amount of accrued interest as of December 31, 2018? A. $5,100 B. $2,550 C. $10,200 D. $7,650 32. Zorn Inc. makes a sale for $300. The company is required to collect sales taxes amounting to 9%. What is the amount that will be credited to the Sales Tax Payable account? A. $27 B. $273 C. $300 D. $327 33. A company started the year with $3,750 of supplies on hand. During the year the company purchased additional supplies of $2.000 and recorded them as an increase to the supplies asset. At the end of the year the company determined that only $750 of supplies are still on hand. What is the adjusting journal entry to be made at the end of the period? A. B. C. D. Debit Supplies Expense and credit Supplies for $5,000 Debit Supplies and credit Supplies Expense for $750 Debit Supplies Expense and credit Supplies for $3,000 Debit Supplies and credit Supplies Expense for $2,500