Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended May 31:

		Cost				Retail
Sales					$	300,000
Inventory, May 1	$	137,400			$	198,000
Net purchases	$	184,800			$	273,000
Goods available for sale	$	322,200			$	471,000

Refer to the information above. Estimate the cost of the May 31 inventory using the retail method.

Select one:

a. $116,964

b. $137,400

c. $150,425

d. $204,000

2.

The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.

What is the "adjusted cash balance" at June 30?

Select one:

a. $3,900.

b. $3,093.

c. $7,600.

d. $2,400.