Question 54

Q: A company records $3,500 of sales revenue through credit card purchases. The credit card company charges a merchant fee of 3 percent. Which of the following is true?

	A.	The company will report a contra-revenue of $105
	B.	The company will report net sales revenue of $3,500
	C.	The company will report net sales revenue of $3,395
	D.	The company will report credit card service charge expense of $115

1 points

Question 55

Q: ABC Corporation has 100 units of inventory. 40 were purchased on April 15 for $9/each. 60 were purchased on April 30 for $9.50 each. On May 3, the company sells 70 units. Which of the following statements will be true? Note that you should be able to answer this question WITHOUT doing any calculations.

	A.	Revenue will be higher using LIFO than using FIFO.
	B.	Ending inventory computing using LIFO will be higher than ending inventory computed using FIFO
	C.	C. Gross profit using LIFO will be higher than gross profit computed using FIFO.
	D.	COGS computed using FIFO will be lower than COGS computed using LIFO.