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Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2016. The note, along with interest at 6%, is due on June

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Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2016. The note, along with interest at 6%, is due on June 30, 2017. On September 30, 2016, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank? a. $40, 600. b. $36,000. c. $39, 220. d. $36, 820. On April I of the current year, Troubled Company factored receivables with a carrying value of $85,000 for $60,000 in cash from Scrooge Lenders. The transfer was made without recourse. On April 1, Troubled would: a. Credit deferred interest expense for $25,000. b. Credit factored accounts receivable for $85,000. c. Debit discount on liability for $25,000. d. Debit loss on sale of receivables for $25,000. The Mateo Corporation's inventory at December 31, 2016, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2016, was received on January 5, 2017. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2016, was received on January 3, 2017. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2017. Merchandise costing $12,000 was being held on consignment by Traynor Company. What amount should Mateo Corporation report as inventory in its December 31, 2016, balance sheet? a. $367,000. b. $427,000. c. $405,000. d. $325,000. In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is: a. Weighted average. b. Moving average. c. FIFO. d. LIFO

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