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During 2014, Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2012 2013 $80 000 understated

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During 2014, Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2012 2013 $80 000 understated 575.000 overstated Paul uses the periodic inventory system. Prior to any adjustments for these errors and ignoring income taxes, Paul's retained earnings at January 1, 2014, would be: Select one: O a. Correct O b. $15,000 overstated O c. $75,000 overstated O d. $135,000 overstated O e. $15,000 understated A store uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. Past experience indicates that the markup on cost is 25%. The following data relate to the month of March: Inventory cost, March 1 Purchases during the month af cost Sales Sales refums $25,000 67.000 84000 3.000 Using the data above, what is the estimated ending inventory at March 31? Select one: O a. $20,250 O b. $24,800 O c. $27,200 O d. $71.750 O e. $31,250 F.O.B. Destination indicates that: Select one: O a. Merchandise should be included in the buyer's inventory as of the date it is shipped by the seller. O b. The seller should record sales revenue as soon as the merchandise has been shipped. O c. Title to the merchandise passes to the buyer upon receipt at the buyer's warehouse O d. Title to the merchandise passes to the buyer upon shipment by the seller. on Use the following information for the month of May: May 1 7 18 22 29 Beginning Inventory Purchases Sales Purchases Sales 20 units @ $19 70 units @ $20 25 units 10 units @ $22 40 units sion Assuming that a periodic inventory system is used, what is ending inventory on a FIFO basis? Select one: O a. $720 O b. $680 O c. $1.280 O d. $1.320 A present value of an ordinary annuity computation assumes the initial annuity is: Select one: ca. One period beyond the present date O b. On the day of the present date O c. Greater than the future installments O d. Less than the future installments O e. One period before the present date

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