31 32 33 Cash, Accounts Receivable, Allowance for Doubtful Accounts and Merchandise Inventory are all asset accounts, increased by a debit and reported on the Balance Sheet 34 35 36 I True False 37 38 39 40 41 42 Question 18 (4 points) LIFO (Last in First Out) compared to FIFO (First In First Out) will result in the same dollar value for Goods Available for Sale but the weighted Average Method (Average Cost) will result in a lower dollar value for Goods Available for Sale. 43 44 45 True False 47 48 1 49 50 51 Question 19 (4 points) The maximum depreciation that can be taken on a long-term asset is cost minus salvage value True False Question 20 (4 points) Merchandise Inventory is a current asset reported on the Balance Sheet MacBook Time Limit: 1:30:00 Time Left:Time Exceeded Eustace Adiemelt: Attempt 1 31 32 33 True False 34 35 36 Question 20 (4 points) Merchandise Inventory is a current asset reported on the Balance Sheet. 37 38 39 True 40 41 42 False ! 43 44 45 46 47 48 49 sa 51 Question 21 (4 points) The Fitzgerald Co. is a merchandise company that purchases already made goods to resale to its customers. On January 4th, the Fitzgerald Co. purchased $80,000 of inventory on account. Discount terms 2/10, net 60 and the freight agreement specifies FOB destination The following transactions occurred specific to the inventory purchase. On Jan. 10, the Fitzgerald Co. returned $5,000 of inventory that was damaged. - On Jan. 12, the Fitzgerald Co. paid the balance due for the inventory purchased on Jan 4th Based on this information the journal entry prepared by the Fitzgerald Co. on January 4th, would include a: 52 MacBook