Question 37 2.5 pts Which of the following statements is true during a period of rising purchase prices? Using FIFO will result in higher cost of goods sold and lower gross profit. O Using FIFO will result in lower cost of goods sold and lower gross profit. Using FIFO will result in lower cost of goods sold and higher gross profit. Using FIFO will result in higher cost of goods sold and higher gross profit. Dawson Company had the following information for the current year: Net Sales Accounts receivable, $5,000,000 Dec. 31 $300,000 Accounts receivable, Jan. 1 $200,000 Inventory, Dec. 31 $200,000 Inventory, Jan. 1 $150,000 Cost of goods sold $3,000,000 Calculate the inventory turnover ratio. O 8.6 0 20 O 15 O 17.1 On June 10, a $5,000 account receivable from a customer was written off using the allowance method. On November 1, the account was collected from the customer. How would the reinstatement of the account (reversal of the write-off) on November 1 affect the accounting equation? Total assets would decrease and stockholders' equity would increase. Total assets would not change. Total assets and stockholders' equity would increase. Total assets and stockholders' equity would decrease. 700 33 2.5 pts Which of the following statements is true regarding the aging of receivables approach under the allowance method for estimating uncollectible accounts at the end of the accounting period? O It is a balance sheet approach. O It estimates bad expense as a percentage of credit sales. O It does not use an allowance for bad debts. It is an income statement approach. 2. Which of the following is not an example of a credit memo? O All of these are examples of credit memos. O Collection of a customer's receivable by the bank. O Interest earned on a checking account. Bank service charge