At the end of its first year of operations, Berroa & Brijmohan Pharmaceutical (B&B) reported an allowance for uncollectible accounts of $83,400 on its balance sheet. During the year, B&B wrote off $31,300 of accounts receivable it had attempted to collect and failed. A credit agency was hired to pursue collection of three accounts totalling $100,000. Credit sales for the year were $2,270,000, and cash collections from credit customers totaled $1,910,000. What bad debt expense would B&B report in its first-year income statement?

Multiple Choice

• Can't be determined from the given information.

• $83,400.

• $114,700.

• $52,100.

Ebihara Klopsis Dress Makers adopts the average cost retail method to calculate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $61,500 and $121,000, net purchases at cost and retail were $313,000 and $481,000, and sales during the first six months totaled $491,000. Inventory calculated at June 30, 2021, would be:

Multiple Choice

• $55,620.

• $72,120.

• $68,820.

• $63,870.

Chen Echevarria & Daughters Inc. began 2021 with a credit balance of $32,800 in the refund liability account. Sales and cash collections from customers during the year were $680,000 and $640,000, respectively. The company estimates that 6% of all sales will be returned. During 2021, customers returned merchandise for credit of $24,000 to their accounts. What is the balance in the refund liability account at the end of 2021?

Multiple Choice

• $8,800.

• $49,600.

• $40,800.

• $64,800.