Below is an extract from an income statement. Beginning Inventory = $36 000 Gross sales = $54 000 Freight in $2 500 Sales returns = $4 000 Ending Inventory = $20 200 Purchases = $28 600 The cost of sales is: Select one: a. $29 500. b. $32 000 c. $34 400. d. $46 900. Bright Spot Ltd uses a periodic inventory system with the weighted average method of cost assignment. The following data are available. January 1, Beginning inventory 500 units @$12. Total cost $6 000 March 15, Purchased 1 500 units @$14. Total cost $ 21 000 June 8, Purchased 2 000 units @$18. Total cost $36 000 December 31, Ending inventory 1 000 units The cost of the ending inventory to the nearest dollar is: Select one: a. $63 000. b. $15 750 c. $5 000. d. $21 000. The selling of accounts receivable as a means of quickly raising cash, minimising debt collecting expenses and minimising bad debt losses is known as: Select one: a. debt diversion b. transfer pricing. c. ageing of debtors. d. debt factoring. What is the effect on the financial statements if no adjustment is made for doubtful debts? Select one: a. Assets are overstated and profit is overstated. b. Assets are understated and profit is understated. C. Assets are overstated and profit is understated. d. Assets are understated and profit is overstated