QUESTION 3

1. Harrison Hardware prepared the following schedule: Cost Retail Beginning merchandise inventory $40,000 $60,000 Purchases for November 100,000 140,000 Sales in November 180,000 Using the retail method for estimating the value of ending inventory, the estimated ending merchandise inventory at cost is:

   		$30,000
   		$180,000
   		$14,000
   		$20,000

1 points

QUESTION 4

1. Goods in transit that were purchased under freight terms of FOB factory should be included in the ending inventory of the buyer

   True

   False

1 points

QUESTION 5

1. ABC Company has given goods on consignment to Costco. At the end of the accounting period, which of the following would include the consigned goods in its inventory?

   		Costco
   		ABC Company
   		Neither company
   		Both companies

1 points

QUESTION 6

1. When using the Accounts Receivable approach to estimate bad debts, what account balance is being calculated?

   		Trade Receivables.
   		Bad Debts Expense.
   		Accumulated Amortization.
   		Allowance for Doubtful Accounts.

1 points

QUESTION 7

1. Which of the following can be used to estimate ending inventory?

   		Retail inventory method
   		FIFO
   		Weighted average
   		Specific identification

1 points

QUESTION 8

1. The Allowance for Doubtful Accounts account has a year-end NORMAL balance, prior to adjustment, of $450. The bad debts are estimated at 3% of $650,000, the net credit sales. After the appropriate adjusting entry for bad debts, the Allowance for Doubtful Accounts would have a credit balance of

   		$19,500
   		$19,950
   		$19,050
   		$20,400

1 points

QUESTION 9

1. The following information is available for Jung Co. for 20X4: - Sales $100,000 - Beginning accounts receivable $7,000 - Cash collected from accounts receivable $89,700 -Beginning balance in allowance for doubtful accounts $350 - Accounts receivable written off during the year $300 - Uncollectible accounts are estimated to be 5% of the ending balance of accounts receivable. - No accounts receivable had been written off during the year. What was Jungs ending balance of accounts receiveable for 20X4?

   		$17,000
   		$16,500
   		$16,150
   		$10,000

1 points

QUESTION 10

1. The following events occurred at Veasey Co.: January 2: Purchased 20 units @ $10 January 4: Purchased 30 units @ $11 January 7: Purchased 15 units @ $12 January 10: Sold 25 units @ $18 What will be the cost of goods sold be if Veasey Co. uses the FIFO cost flow method?

   		$195
   		$250
   		$255
   		$290

1 points

QUESTION 11

1. NRV is applied in which of the following ways?

   		Separately to each item
   		To major categories of each item
   		To the whole inventory
   		All of the above

1 points

QUESTION 12

1. If the ending inventory is understated, then the current years ________ :

   		assets are understated.
   		assets are overstated.
   		equity is understated.
   		1 & 3