eivable prepaid insurance. 5. A company writes a check to replenish a OMR 100 petty cash fund when the fund contains receipts of OMR 94 and OMR 5 in cash. In recording the check, the company should: a) debit Cash Over and Short for OMR 1. b) debit Petty Cash for OMR 94. c) credit Cash for OMR 94. d) credit Petty Cash for OMR 2. 6. Net sales for the month are OMR 700,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If Allowance for Doubtful Accounts has a credit balance of OMR 15,000 before adjustment, what is the balance after adjustment? a) OMR 15,000. b) OMR 25,500. c) OMR 23,000. d) OMR 31,000 7. In periods of rising prices, LIFO will produce lower net income than FIFO (TRUE / FALSE) 8. Cost of goods available for sale consist of two elements: beginning inventory and ending inventory (TRUE / FALSE) 9. Rickety Company purchased 1,000 widgets and has 200 widgets in its ending inventory at a cost of $91 each and a current replacement cost of $80 each. The ending inventory under lower of cost or market is 10. As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31, 2010. This count did not take into consideration the following facts: Rogers Consignment store currently has goods worth $35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. Determine the correct amount of inventory that Railway should report