QUESTION 12 Suppose that David had the following transactions for his business inventory of widgets (purchase prices below) Widget Purchase Date Direct Cost Other Costs Total Cost 1 August 15 $ 2,100 $ 100 $ 2,200 2 October 30 $ 2,200 $ 150 $ 2,350 3 November 10 $ 2,500 $ 100 $ 2,600 In late December, David sold widget 2 What cost of goods sold would David record if he elects to use the LIFO method this year QUESTION 13 Suppose that David had the following transactions for his business inventory of widgets (purchase prices below) Widget Purchase Date Direct Cost Other Costs Total Cost 1 August 15 $ 2,100 $ 100 $ 2,200 2 October 30 $ 2,200 $ 150 $ 2,350 3 November 10 $ 2,500 $ 100 $ 2,600 In late December, David sold widget 2 What ending inventory would David record if he elects to use the FIFO method this year QUESTION 14 This year William provided $7,200 of services to a large client on credit Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the services Moreover, William does not expect to collect for his services William has written off the account and would like to claim a deduction for tax purposes What amount of deduction for bad debt expense can William claim this year if he uses the accrual method QUESTION 15 This year William provided $7,200 of services to a large client on credit Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the services Moreover, William does not expect to collect for his services William has written off the account and would like to claim a deduction for tax purposes What amount of deduction for bad debt expense can William claim this year if he uses the cash method

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QUESTION 12

Suppose that David had the following transactions for his business inventory of widgets (purchase prices below).

Widget Purchase Date Direct Cost Other Costs Total Cost #1 August 15 $ 2,100 $ 100 $ 2,200 #2 October 30 $ 2,200 $ 150 $ 2,350 #3 November 10 $ 2,500 $ 100 $ 2,600

In late December, David sold widget #2. What cost of goods sold would David record if he elects to use the LIFO method this year?

QUESTION 13

Suppose that David had the following transactions for his business inventory of widgets (purchase prices below).

Widget Purchase Date Direct Cost Other Costs Total Cost #1 August 15 $ 2,100 $ 100 $ 2,200 #2 October 30 $ 2,200 $ 150 $ 2,350 #3 November 10 $ 2,500 $ 100 $ 2,600

In late December, David sold widget #2. What ending inventory would David record if he elects to use the FIFO method this year?

QUESTION 14

This year William provided $7,200 of services to a large client on credit. Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the services. Moreover, William does not expect to collect for his services. William has written off the account and would like to claim a deduction for tax purposes. What amount of deduction for bad debt expense can William claim this year if he uses the accrual method?

QUESTION 15

This year William provided $7,200 of services to a large client on credit. Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the services. Moreover, William does not expect to collect for his services. William has written off the account and would like to claim a deduction for tax purposes. What amount of deduction for bad debt expense can William claim this year if he uses the cash method?