In periods of rising prices, the inventory method which results in the inventory value on the sheet that is closest to current cost is the: 26. balance A LIFO method. B. average cost method. C. tax method. D. FIFO method. 27. In a period of declining prices, which inventory coot flow assumption will result in the highest amourt of gross profit? A. Income tax expense will be the same under all assumptions. B. LIFO C. FIFC D. Average cost method 28. Wrangler Inc. uses the percentage of credit sales method to estimate Bad Debt Expense. At the end of the year, the company's unadjusted trial balance includes the following: $363,000 Accounts receivable $1,600 $914,000 Allowance for Doubtful Accounts (credit balance) Net Credit Sales Wrangler has experienced bad debt losses of 0.3% of credit sales in prior periods, what is the Bad Debt Expense to be recorded for the year? A. $5,942 B. $4,342 C. $1,142 D. $2,742 29. Using the allowance method, which is the correct adjusting journal entry to record bad debt expense? A. Debit Allowance for Doubtful Accounts and credit Bad Debt Expense B. Debit Allowance for Doubtful Accounts and credit Accounts Receivable C. Debit Bad Debt Expense and credit Accounts Receivable D. Debit Bad Debt Expense and credit Allowance for Doubtful Accounts E. Debit Bad Debt Expense and credit Sales Revenue