points Save At the end of the year, a company reports the following inventory amounts (5 per unit): Item # of Units Cost Net Realizable Value X 100 $5 $6 $7 How much will inventory for each product need to be reduced using the lower of cost and net realizable value method? Y 200 $8 A Reduce Produce X by $100 Reduce Product Y by $200 Reduce Produce X by So Reduce Product Y by $100 Reduce Produce X by So Reduce Product Y by $200 Reduce Produce X by $100 Reduce Product Y by $0 OD Red Company had the following transactions and uses a perpetual inventory system: March 1st. Bought $9,500 worth of inventory from Brown Corp on account March 5th Successfully returned $300 worth of product to Brown Corp March 25th Paid Brown Company in full What is the journal entry on March 25th that Red Corp would record: Inventory $9,500 . Sales Return $300 Cash $9,200 Account Payable $9,500 . Sales Discount $300 Cash $9,200 Account Payable $9,200 Cash $9,200 . $9,500 Cash Accounts Payable $9,500 OD 8 points Save Answer Aunt Bess Corp had the following inventory, Aunt Bess Corp makes one sale of 200 units on December 23rd and uses the weighted Average method to account for inventory. What is the cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Jan 1 Beg.Inventory 100 $20 $2000 Jan 10 Purchase 150 $30 $4500 Cost of Good Sold 55.000: Ending inventory 51,500 Cost of Good Sold 54.000 : Ending inventory 51,000 Cost of Good Sold $5.500: Ending inventory 51,000 Cost of Good Sold 55.200 : Ending inventory 31,300 . OD Aunt Bess Corp had the following inventory. Aunt Bess Corp makes one sale of 200 units on December 23rd and uses the LIFO method to account for inventory. What is the cost of Goods sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Jan 1 Beg. Inventory 100 $20 $2.000 Jan 10 Purchase 150 $30 $4.500 OB Cost of Good Sold 55.000: Ending inventory 51500 Cost of Good Sold 54,000 : Ending inventory $1,000 Cost of Good Sold 55.500: Ending inventory $1.000 Cost of Good Sold 55.200: Ending inventory $1,300 oc OD. Armer Aunt Connie Corp had the following Inventory. Aunt Connie Corp makes one sale of 200 units on December 23rd and uses the FIFO method to account for Inventory. What is the cost of Goods Sold in December? What is the Ending Inventory in December? Date Transaction Units Cost Total Cost Jan 1 Beg Inventory 100 $45 $4,500 Jan 10 Purchase 150 $40 $6.000 Cost of Good Sold 58,500: Ending inventory $2.000 OB. Cost of Good Sold 58.250 : Ending inventory 52.250 Oc Cost of Good Sold 54,500: Ending inventory 50,000 Cost of Good Sold $1,400: Ending inventory 52.100 OD On January 1st Adams Co has inventory of $50,000. They purchase $10,000 on January 4th and $100,000 on January 20th Ending Inventory is $20,000. What was the cost of goods sold in January? O A $110,000 OB. $90.000 OD $140.000 550.000 Company ABC purchased inventory costing $200. On February 4th Company ABC sold it to a customer on account for $415 dollars. How should ABC record the sale on February 4th? Inventory $215 Cost of Goods Sold $215 A Sales Revenue $215 Accounts Receivable $215 Cost of Goods Sold $200 Inventory $200 Accounts Receivable $415 . Sales Revenue $415 $415 Accounts Receivable Sales Revenue Cost of Goods Sold $215 $200 . $415 $415 Cost of Goods Sold Inventory Accounts Receivable OD Sales Revenue $200 $200 On the balance sheet, inventory is classified as: Long Term Asset . Current Asset OB. Contra Asset . OD. Current Liability Crisp Inc reported the following on Dec 31 St. What is the company's gross profit? Account Amount Sales Revenue $151,000 Sales Allowance $5,000 $76,000 Cost of Goods Sold Income Tax Expense Accounts Receivable $11,000 $90,000 interest Receivable $10,000 $70,000 . OB. 559.000 OC $64,000 ODS $75,000 Inventory is increased in a journal entry with a It is an account. B Debit, Asset Debit ; Expense Credit; Asset OD. Credit: Expense . Marco Manufacturing lends cash to the CEO on August 1, 2020 and accepts a $5,000 note receivable that offers 6% interest and is due in twelve months. How would Marco Manufacturing record the year-end adjustment to accrue interest on December 31, 2020? 100 Interest Revenue Interest Receivable OA 100 200 Interest Receivable Interest Revenue OB 200 125 Interest Receivable Interest Revenue . 125 Interest Receivable 100 00 Interest Revenue 100 Save Answer 8 points Sam's Shed had account balances in Accounts Receivable of $200,500 and in Allowance for Uncollectible Accounts of $900 (debit) before any adjustments on December 31. An analysis on December 31 determined that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the end of period adjustment would be: O A 56,915 OB $7.815 OC 55,115 OD 56,013 The normal balance of the account "Sales Allowances" is a because . Debit; it is a contra revenue account to Sales Revenue OB. Credit; it is a contra asset account to Accounts Receivable . Debit, it is an expense in the income statement Credit, it is a contra expense account to Bad Debt Expense OD. . Fred Farms delivers and sells product worth $2,000 to a store on account. What will Fred Farm record? Debit Cash $2,000, credit Sales Revenue $2,000. O B. Debit Accounts Receivable $2,000, credit Sales Revenue $2,000. . Debit Sales Revenue $2,000, credit Accounts Receivable $2,000. Debit Cash $2,000, credit Deferred Revenue $2,000. D Space United has to write off $5,000 in uncollectible accounts receivable. What Journal entry will they record using the allowance method? Bad Debt Expense 5,000 Accounts Receivable 5,000 Bad Debt Expense 5,000 OB Allowance for Uncollectible Accounts 5,000 Allowance for Uncollectible Accounts 5,000 Accounts Receivable 5,000 . 5,000 Allowance for Uncollectible Accounts Bad Debt Expense OD 5,000 pun Banana Corp uses the direct write-off method. They have an actual bad debt of $100. What journal entry will they record at the time the bad debt occurs? Allowance for Uncollectible Accounts Accounts Receivable $100 $100 $100 Bad Debt Expense Accounts Receivable OB $100 Bad Debt Expense Allowance for Uncollectible Accounts $100 $100 . Cannot determine without Allowance for Uncollectible Accounts balance OD Save Answer 8 points Before any adjustments, Frost Company had an end of the year accounts receivable balance of $125,000 and the allowance for uncollectible accounts had a $300 credit balance. An analysis of accounts receivable determines that the allowance for uncollectible accounts should be 5% of accounts receivable. The adjusting entry would include a credit to Allowance for Uncollectible Accounts of: $6,550. 08.$5,950 O C 56,250. OD. $5,750. 8 points Net accounts receivable (Net realizable value) is accounts receivable minus O A Beginning balance of Accounts Receivable. OB. Contra revenues Oc Allowance for uncollectible accounts. Sales Discounts and Sales Allowances OD On May 1 of the current year, Yam Jam sold produce to a customer for $3,000 with credit terms 2/10,n/40 The customer made the correct payment on May 9th. How would Yam Jam record the collection of cash on May 9th? Cash Accounts Receivable 2,940 2,940 Cash Accounts Receivable 3,000 3,000 Cash Sales Discount Sales Revenue 2,940 60 3,000 Oc Cash Sales Discount Accounts Receivable 2,940 60 3,000 CD On May 1 of the current year, Yam Jam sold produce to a customer for $3,000 with credit terms 2/10, 1/40. How would Yam Jam record the sale on May 1? Accounts Receivable Cash Discount Sales Revenue 2,940 60 3,000 3000 Accounts Receivable Cash Discount Sales Revenue 60 2,940 OB 2,940 Accounts Receivable Sales Revenue 2,940 Accounts Receivable 3,000 Which of the following accounts are reported in the post closing trial balance? Service revenue interest expense and supplies expense Cash Accounts receivables, and retained earnings Accounts receivables, supplies and service revenue OD. Cash service revenue and interest expense B. . 8P and is reported on the balance sheet as Cash received from customers in advance is recorded as A Deferred revenue, revenue OB. Prepaid expense, liability . Deferred revenue, asset Deferred revenue. liability OD Which of the following is the correct closing entry for a service revenue of $75,000? Retained earnings $75,000 . Service revenue $75,000 Retained earnings $75,000 OB. Salaries expense $75,000 $75,000 . Salaries expense Retained eearnings $75,000 Service revenue $75,000 OD Retained earnings $75,000 Consider the following items: Land Accounts Receivable Notes Payable (due in three years) Accounts Payable Retained Earnings Prepaid Rent Deferred Revenue Buildings Notes Payable (due in six months) Equipment How many of the items listed above are generally current liabilities? One OA B. Two Three . OD Four