QUESTION $27$

The Sarbanes$-$Oxley Act $($SOX$)$ requires state governments to review internal control and take responsibility for the accuracy and completeness of their financial reports.

a$.$ True

b$.$ False

QUESTION $28$

On January $5$th$,2025,$ BMCC Corporation purchased Inventory at a cost of $$20$ per unit. The market value of the units purchased on the same date was $$19$ per unit. Applying the Lower$-$of$-$cost$-$or$-$market rule, what amount per unit would be recorded in the Balance Sheet?

a$.$ $$20$ per unit

b$.$ $$19$ per unit

c$.$ $$25$ per unit

d$.$ None of the above

QUESTION $29$

BMCC Corp earned net credit sales of $$311,000$ in the full year $2024.$ Industry experience suggests that bad debts will amount to $21\%$ of Accounts Receivables. At December $31,2024,$ accounts receivable total $$44,000.$ The company uses the allowance method to account for uncollectibles. What would be the journal entry to record Bad Debt Expense under the Percentage$-$of$-$Receivables

Method, assuming that the Allowance for Bad Debt Account has a Beginning credit balance of $$2,000?$

a$.$ Dr$.$ Allowance for Bad Debt $$9,240$; Cr$.$ Bad Debt Expense $$9,240$

b$.$ Dr$.$ Bad Debt Expense $$9,240$; Cr$.$ Allowance for Bad Debt $$9,240$

c$.$ Dr$.$ Allowance for Bad Debt $$7,240$; Cr$.$ Bad Debt Expense $$7,240$

d$.$ Dr$.$ Bad Debt Expense $$7,240$; Cr$.$ Allowance for Bad Debt $$7,240$

e$.$ None of the above.