The Acme Corporation starts the year with a beginning inventory of 300 unit at $5 per unit. The company purchases 500 units at $4 each In February and 200 units at $6 each in October. Acme sells 150 units during the year. Acme has a perpetual inventory system and uses the FIFO Inventory costing method. What Is the amount of cost of goods sold? $600 $934 $750 $900 The Mini-Mow Lawn Care Company provides $35,000 worth of lawn care on account during the month. Experience suggests that about 4% of net credit sales will not be collected. According to the revenue recognition principle and the matching principle, the company should: not report the sales revenue until It collects payment. record an estimate of bad debt expense In the same period as the lawn care Is provided. increase the value of its liabilities with an adjustment. wait until the accounts are determined to be uncollectible before making an entry for bad debt expense. On July 1^st, a company with a December 31^st year end lends a corporate customer $50,000 at 8% interest. The amount of interest revenue that should be recorded for the year ende December 3^st (related to this loan) is: $4,000. $1,000. $2,000. $333. When a company that uses the allowance method writes off an actual bad debt: total assets, revenues, and expenses remain the same. total liabilities Increase. total assets decrease. total expenses increase and total revenues increase