A bank statement shows a balance of $5,630 at June 30. A bank reconciliation is prepared and includes outstanding checks of $1,860, deposits in transit of $900, and a bank service charge of $20. Among the paid checks returned by the bank was check no. 900 in the amount of $400, which the company had erroneously recorded in the accounting records as $40. The "adjusted cash balance" at June 30 is: 26. A) $4,310. B) $4,290 C) $4,670. D) $5,090. Juliet Inc. had accounts receivable of $300,000 and an allowance for doubtful accounts of $18,500 just before writing off as worthless an account receivable from Arrow Company of $1,200. The net realizable values of the accounts receivable before and after the write-off were: A) $281,500 before and $280,300 after. B) $281,500 before and $281,500 after C) $300,000 before and $298,800 after D) $318,500 before and $317,300 after 28. At December 31, before adjusting and closing the accounts had occurred, the Allowance for Doubtful Accounts of Marshall Corporation showed a debit balance of $3,200. An aging of the accounts receivable indicated the amount probably uncollectible to be $2,100. Under these circumstances, a year-end adjusting entry for uncollectible accounts expense would include a: A) Debit to the Allowance for Doubtful Accounts for $1,100. B) Credit to the Allowance for Doubtful Accounts for $1,100. C) Debit to Uncollectible Accounts Expense of $2,100. D) Debit to Uncollectible Accounts Expense of $5,300. The lower of cost or market rule may be applied by comparing the market value of the inventory to the cost of the inventory based on: 29. A) Individual inventory items. B) Major inventory categories. C) The entire inventory D) All of the above. 30. When prices are increasing which inventory method will produce the highest cost of goods sold? A) FIFO B) LIFO C) Average D) Cost of goods sold will not change