For problems $23.$ and $24.,$ refer to the following information related to Addison, Inc.

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:

Sep. $1$ Inventory $20$ units at $$20$

$4$ Sold $10$ units

$10$ Purchased $30$ units at $$25$

$17$ Sold $20$ units

$30$ Purchased $10$ units at $$30$

$23.$ D If Addison uses FIFO, the value of the ending merchandise inventory on the September $30$ balance sheet is

A$.650$

B$.700$

C$.750$

D$.800$

$24.$ C If Addison uses LIFO, the value of the ending merchandise inventory on the September $30$ balance sheet is

A$.650$

B$.700$

C$.750$

D$.800$

$25.$ A When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is:

A$.$ Dr$.$ Cost of Merchandise Sold

Cr$.$ Merchandise Inventory

B$.$ No journal entry is required.

C$.$ Dr$.$ Merchandise Inventory

Cr$.$ Cost of Merchandise Sold

D$.$ Dr$.$ Cost of Merchandise Sold

Cr$.$ Sales

Questions $26-30$ relate to CSO $2\mathrm{.}4,2\mathrm{.}5$

Objective $2\mathrm{.}4$: Describe the importance of internal controls in any business and how they affect the business

Objective $2\mathrm{.}5$: Prepare and read a bank reconciliation and prepare associated adjusting journal entries

$26.$ B Which one of the following below is not an element of internal control?

A$.$ monitoring

B$.$ cost$-$benefit considerations

C$.$ information and communication

D$.$ risk assessment

$27.$ A The objectives of internal control are to

A$.$ provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with

B$.$ provide control over "internal$-$use only" reports and employee internal conduct

C$.$ prevent fraud, and promote the social interest of the company

D$.$ control the internal organization of the accounting department personnel and equipment

$28.$ C The following data were gathered to use in reconciling the bank account of Savannah Company:

Balance per bank $16,750$

Balance per company records $16,125$

Bank service charges $80$

Deposit in transit $2,195$

NSF check $950$

Outstanding checks $3,850$

What is the adjusted balance on the bank reconciliation?

A$.10,705$

B$.15,720$

C$.15,095$

D$.14,470$

$29.$ D Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

A$.$ Dr$.$ Cash

Cr$.$ Other Income

B$.$ Dr$.$ Accounts Payable

Cr$.$ Cash

C$.$ Dr$.$ Cash

Cr$.$ Accounts Payable

D$.$ Dr$.$ Miscellaneous Administrative Expense

Dr$.$ Cash

$30.$ D Accompanying the bank statement was a credit memo for a short$-$term note collected by the bank for the customer. What entry is required in the company's accounts?

A$.$ Dr$.$ Cash

Cr$.$ Miscellaneous Income

B$.$ Dr$.$ Accounts Receivable

Cr$.$ Cash

C$.$ Dr$.$ Cash

Cr$.$ Notes Receivable

Cr$.$ Interest Revenue

D$.$ Dr$.$ Notes Receivable

Cr$.$ Cash

Questions $31-35$ relate to CSO $2\mathrm{.}6$

Objective $2\mathrm{.}6$: Prepare accounts receivable and notes receivable calculations and journal entries

$31.$ A After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $$340,000$ and Allowance for Doubtful Accounts has a balance of $$51,000.$ What is the net realizable value of the accounts receivable?

A$.289,000$

B$.391,000$

C$.340,000$

D$.51,000$