- The following data have been taken from the 19X4 accounting records of Kirby Corp.:

Dr. Cr.

Total sales for 19X4 $450,000

Credit sales for 19X4 360,000

Accounts receivable, 12/31/X4 $63,000

Allowance for Doubtful Accounts,

12/31/X4 3,000

Kirby estimates that 6% of its accounts receivable will be uncollectible. How much should Kirby record as Uncollectible Accounts Expense for 19X4?

a. $780.

b. $2,700.

c. $3,780.

d. $6,780.

-On November 1, 19X8, Forte Company received a $12,000, 3-month, 10% note. How much interest revenue should be reported in 19X8 on this note?

a. $100.

b. $200.

c. $300.

d. $1,200.

-Host, Inc., stocks a variety of inventory items. The company began to stock item no. 675 in February of the current year and made the following purchases:

Feb. 9 200 units at $10.00

June 8 500 units at $10.50

Oct. 3 300 units at $10.75

If Host uses the first-in, first-out method of inventory valuation and 350 units were on hand as of December 31, the firm's cost of goods sold would amount to:

a. $3,575.

b. $3,750.

c. $6,725.

d. $6,900.

-Oxford Company had a beginning inventory of 700 units that cost $9.00 each. Purchases were made in June (3,600 units) and October (5,800 units) at costs of $9.50 and $9.80, respectively. If Oxford uses LIFO and a physical count revealed 1,100 units on hand, the company's balance sheet would disclose an ending inventory valuation of:

a. $10,100.

b. $10,780.

c. $86,560.

d. $87,240.

-Jackson's inventory cost on the balance sheet was lower when using first-in, first-out than when using last-in, first-out. Assuming no beginning inventory, in which direction did the cost of purchases move during the year?

a. Up.

b. Down.

c. Steady.

d. Cannot be determined.