QUESTION 1 One of the following inventory methods is often impractical to use? Which is it? O a.LIFO O b. Average cost O c. Specific identification O d. FIFO Sky Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600,000 and credit sales are $2,700,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Sky Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment? O a. Bad Debt Expense Allowance for Doubtful Accounts 19,000 19,000 Ob. Bad Debt Expense Accounts Receivable 19,000 19,000 . Bad Debt Expense Accounts Receivable 24,000 24,000 Od Bad Debt Expense 24,000 Click Save and Submit to save and submit. Chick Save All Answers to save all answers. QUESTION 3 ABC company just started in business. ABC purchased three merchandise inventory items at the following prices: first purchase $64; second purchase $76; and third purchase $68. If the company sold two units for a total of $200 and used FIFO costing, the gross profit for the period would be O a $68 O b.$60 O c $56 O d. $62 QUESTION 4 Inventory is O a generally valued at the price for which the goods can be sold. O b.often reported as a miscellaneous expense on the income statement O c. reported as a current asset on the balance sheet O d.reported under the classification of Property, Plant, and Equipment on the balance sheet QUESTION 5 A Sales Returns and Allowances account should not be debited if a customer O a. returns defective merchandise O b.returns goods that are not in accordance with specifications. O c. receives a credit for merchandise of inferior quality O d. utilizes a prompt payment incentive. QUESTION 6 An example of poor internal control is. O a. A salesperson makes the sale, and a different person ships the goods. O b. The custodian of an asset should not maintain or have access to the accounting records. O c. The accountant should not have physical custody of the asset nor access to it O d.One person should be responsible for handling related transactions. QUESTION 7 At May 1, 2022, Kaycee Company had beginning inventory consisting of 200 units with a unit cost of $7. During May. the company purchased inventory as follows 800 units at $7 600 units at $8 The company sold 1,000 units during the month for $12 per unit. Kaycee uses the average cost method. The weighted average cost per unit for May is O a. $7.500 O b. $7.375. O c. $8.000 O d. $7.000 QUESTION 8 When a seller grants credit for retumed goods, the account that is credited is O a. Sales Revenue. O b. Sales Returns and Allowances. O c. Inventory O d. Accounts Receivable