7 The cost of the items in closing inventory is $50,000. This included some items which cost $1,800 and which were damaged in transit. You estimated that it will cost $350 to repair the items, and they can then be sold for $1,200. Which is the correct inventory valuation for inclusion in the final accounts? $40,840 (A) (B) $49,040 (C) $49,050 (D) $39,040 8 At the year-end, Amy's books show an extract of its receivables. It shows an opening allowance for receivables of $22,000 and a receivable amount of $370,000. Amy decided to write off irrecoverable debts amounting to $20,000. The closing allowance for receivables has been set at 25%. What will be the net closing balance for receivables that will be shown in the Statement of Financial Position? (A) $260,000 (B) $262,500 (C) $229,500 (D) $220,000 9 Company pays rent quarterly in arrears on 1 Jan, 1 Apr, 1 Jul, 1 Oct in year 20x2. The rent increased from $90,000 per year to $120,000 per year from 1 Oct 20x2. So, what the: Total rent expense for year ended 31 Jan 20x3? Amount of accrual expense? 10 (1) (ii) Rental expense Accrual (A) $40,000 $7,500 (B) ) ) $60,000 $100,000 (D) $10,000 $10,000 $10,000 $7,500 Page 4 of 9 Jane is a sole trader. He provides the following information for the month of April. What is the value of the closing inventory at the end of April if Jane adopts the FIFO method of inventory valuation? Price Value Units $ S 1 Opening inventory 100 2.10 210 7th Purchases 700 2.60 1,820 11 Sales 600 19 Purchases 900 2.70 2,430 30 Sales 800 (A) $1,620 (B) $810 (C) $520 (D) $3,650