INSTRUCTIONS: CHOOSE THE BEST ANSWER FOR EACH OF THE FOLLOWING MCQS 1. ON JANUARY 1, 2014, THE MERCHANDISE INVENTORY OF COLTER, INC. WAS $1,000,000. DURING 2014, COLTER PURCHASED $2,000,000 OF MERCHANDISE AND RECORDED SALES OF $2,500,000. THE GROSS PROFIT RATE ON THESE SALES WAS 25%. WHAT IS THE MERCHANDISE INVENTORY OF COLTER AT DECEMBER 31, 2014? (4MARKS) A. $500,000. B. $625,000. c. $1,125,000. D. $1,875,000 2. A PETTY CASH FUND OF $100 IS REPLENISHED WHEN THE FUND CONTAINS $3 IN CASH AND RECEIPTS FOR $93. THE ENTRY TO REPLENISH THE FUND WOULD: (2MARK) A. CREDIT CASH OVER AND SHORT FOR $4. B. CREDIT MISCELLANEOUS REVENUE FOR $4. C. DEBIT CASH OVER AND SHORT FOR $4. D. DEBIT MISCELLANEOUS EXPENSE FOR $4. 3. WHICH OF THE FOLLOWING ITEMS SHOULD BE INCLUDED IN A COMPANY'S INVENTORY AT THE BALANCE SHEET DATE? (1 MARK) A. GOODS IN TRANSIT WHICH WERE PURCHASED F.O.B. DESTINATION. B. GOODS RECEIVED FROM ANOTHER COMPANY FOR SALE ON CONSIGNMENT. C. GOODS SOLD TO A CUSTOMER WHICH ARE BEING HELD FOR THE CUSTOMER TO CALL FOR AT HIS OR HER CONVENIENCE. D. NONE OF THESE 4. JONES COMPANY HAD CHECKS OUTSTANDING TOTALING $6,400 ON ITS MAY BANK RECONCILIATION. IN JUNE, JONES COMPANY ISSUED CHECKS TOTALING $39,900. THE JULY BANK STATEMENT SHOWS THAT $29,700 IN CHECKS CLEARED THE BANK IN JULY. A CHECK FROM ONE OF JONES COMPANY'S CUSTOMERS IN THE AMOUNT OF $300 WAS ALSO RETURNED MARKED "NSF." THE AMOUNT OF OUTSTANDING CHECKS ON JONES COMPANY'S JULY BANK RECONCILIATION SHOULD BE: (3MARKS) A. $19,600. B. $10,200. c. $16,600. D. $3,800