Multiple-Step Income Statement On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 2019. b. What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement shows the relationship of gross profit to sales. FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: The firm uses the perpetual inventory system, and there are 31,200 units of the item on hand at the end of thear. a. What is the total cost of the ending inventory according to FIFO? $ 823,680 b. What is the total cost of the ending inventory according to LIFO? $ 763,200 Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 1,000 units at $120 Feb. 17 Purchase 1,375 units at $128 July 21 Purchase 1,500 units at $136 Nov. 23 Purchase 1,125 units at $140 There are 1,200 units of the item in the physical inventory at December 31 . The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. $ 167,700 b. Determine the inventory cost by the last-in, first-out method. $ 145,600 c. Determine the inventory cost by the weighted average cost method. $ Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31 : The company prepared the following aging schedule for its accounts receivable on December 31 : a. Journalize the write-offs for under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank. Write-off 21,550 33,925 27,565 19,460 Adjustrment 117,150 c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method? $ 14,650