Lin & Zhang Vitamin Shop estimates bad debt expense at 2% of credit sales for 2021. The company reported accounts receivable and an allowance for uncollectible accounts of $90,000 and $2,800, respectively, at December 31, 2020. During 2021, credit sales and collections were $411,000 and $415,000, respectively, and $3,390 in accounts receivable were written off. Lin & Zhang's final balance in its allowance for uncollectible accounts at December 31, 2021, is:

Multiple Choice

• $4,800.

• $7,630.

• $6,090.

• $8,220.

Srdanovic Co. provides merchandise to Vilcinskaite Inc. under consignment. The arrangement specifies that Vilcinskaite will attempt to sell the merchandise, and in return, Srdanovic will pay Vilcinskaite a 25% sales commission on any merchandise sold. During the year, Srdanovic ships inventory with a cost of $112,500 to Vilcinskaite. By the end of the year, $86,000 of the merchandise has been sold to customers for a total of $118,800. What amount of inventory will Srdanovic report at year end?

Multiple Choice

• $6,300.

• $26,500.

• $28,125.

• $0.