QUESTION 1 AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue? a. $ 9,800. b. $ 9,900. c. $10,000. d. $10,100. 10 points QUESTION 2 During the year, Kiner Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $50,000 and the balance in the allowance account was $4,500. The net realizable value of accounts receivable after the write-off entry was a. $50,000. b. $49,500. c. $41,500. d. $45,500. 10 points QUESTION 3 Smithson Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $10,000. During 2010, it wrote off $7,200 of accounts and collected $2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/10, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2010? a. $2,000. b. $7,100. c. $9,200. d. $12,000. 10 points QUESTION 4 AG Inc. made a $10,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for $9,800. b. Debit Accounts Receivable for $9,800 and Sales Discounts for $200. c. Debit Accounts Receivable for $10,000. d. Debit Accounts Receivable for $10,000 and Sales Discounts for $200. 10 points QUESTION 5 Lexington Company sells product 1976NLC for $40 per unit. The cost of one unit of 1976NLC is $36, and the replacement cost is $34. The estimated cost to dispose of a unit is $8, and the normal profit is 40%. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market? a. $16. b. $32. c. $34. d. $36. 10 points QUESTION 6 Turner Corporation acquired two inventory items at a lump-sum cost of $50,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $15 per unit, and 1B for $5 per unit. If Turner sells 1,000 units of LF, what amount of gross profit should it recognize? a. $1,875 b. $5,625. c. $10,000. d. $11,875. 10 points QUESTION 7 Robust Inc. has the following information related to an item in its ending inventory. Acer Top has a cost of $502, a replacement cost of $468, a net realizable value of $531, and a normal profit margin of $68. What is the final lower-of-cost-or-market inventory value for Acer Top? a. $463. b. $502. c. $468. d. $531. 10 points QUESTION 8 Muckenthaler Company sells product 2005WSC for $20 per unit. The cost of one unit of 2005WSC is $18, and the replacement cost is $17. The estimated cost to dispose of a unit is $4, and the normal profit is 40%. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market? a. $8. b. $16. c. $17. d. $18. 10 points QUESTION 9 A Company manufactures computers. The company attempts to obtain a 10% gross margin on selling price. At December 31, 2010, the following computer appears in the companys inventory: Computer ABC Inventory cost 800 Estimated cost to manufacture 600 Commissions and disposal costs 100 Catalog selling price 890 After computing LCM, inventory needs to be adjusted by : 0 99 701 790