At the end of last year, Helen's, Inc.(uses a perpetual inventory system) had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000. Based on the foregoing,the balance in the inventory account at January 31 was: QUESTION 23 At the end of last year, Helen's, Inc.(uses a perpetual inventory system) had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000. Based on the foregoing,the total debited to the purchases account during january was: QUESTION 24 During a period of steadily falling prices, which of the following methods of measuring the cost of goods sold is likely to result in reporting the highest gross profit? Specific identification. Average cost. LIFO. FIFO. QUESTION 25 Debra's Gift Shop decreased by $50,000. If the income statement for the current year reported cost of goods sold of $350,000, purchases during the year During the current year, the inventory must have amounted to: $400,000 $310,000. o $300.000. $350,000 QUESTION 26 Fashion House uses a perpetual inventory system. At the beginning of the year, inventory amounted merchandise costing $245,000. A physical inventory taken at year-end showed shrinkage losses of $4,000. Prior to recording these shrinkage losses, the year-end balance in the company's merchandise inventory account was: $50,000. During the year, the company purchased merchandise for $230,000, and sold $31,000. $35,000 $50,000 QUESTION 27 Operating income for a merchandiser typically does not include? administrative salaries interest income the cost of purchases sales returns and allowances QUESTION 28 Regal Artworks Co. records purchases net of all available purchase discounts. If Regal makes payment after the discount has expired, the effect will be to: increase gross profit not change gross profit decrease gross profit more information needed QUESTION 29 The operating cycle is: the average length of time between the purchase of inventory and the realization of cash from the sale of inventory reduced by the time taken to pay suppliers the average length of time between the purchase of inventory and the realization of cash from the sale of inventory the length of time it takes to pay current liabilities the average length of time between the purchase and disposal of a long-term asset QUESTION 30 f inventory valuation method can help achieve each of the following independent goals, except The choice Reduce cost of merchandise acquired from suppliers. Increase reported net income. Increase the inventory turnover rate. Reduce the amount of income taxes owed