PART 1

At the end of the fiscal year before the accounts were adjusted, the accounts receivable account has a balance of $200,000 and the allowance for doubtful accounts has a negative balance of $2,500. If the estimate of uncollectible accounts determined by aging the receivable is $8,500, what is the bad debt expense amount?

Select one:

$6,000

$8,500

$11,000

$2,500

PART 2

The direct labor cost should be recognized first in which inventory account?

Select one:

finished goods inventory

work-in-process inventory

raw material inventory

merchandise inventory

PART 3

The following units of a particular item were available for sale during a period:

Beginning inventory: 40 units at $20 each

Purchase on June 05: 50 units at $21 each

Purchase on June 10: 50 units at $22 each

Purchase on June 15: 50 units at $23 each

What is the unit cost of the 35 units on-hand at the end of June 30, as determined under the FIFO costing method?

Select one:

$20

$23

$21

$22

PART 4

Using the following data, determine the value of inventory at the lower of cost or market (LCM) principle.

How much should be the cost of inventory shown in the balance sheet, if the LCM principle was applied on an item-by-item basis to each commodity separately?

Select one:

$22,780

$24,775

$23,355

none of these answers

PART 5

Using the following data, determine the value of inventory at the lower of cost or market (LCM) principle. How much should be the cost of inventory shown in the balance sheet if LCM principle was applied as a class (i.e., Buffalo, Dakota, Florida, Missouri, and Nebraska being viewed as a class) of inventory?

Select one:

$23,355

none of these answers

$24,775

$22,780