Transactions that affect the Inventory and Accounts Payable accounts: o How do we record the purchase of inventory, return of inventory, payment of related Accounts Payable within the discount period? Be able to use the Cost of Goods Sold formula (Beg inv + Purchases - End inv = COGS) In a period of rising prices, which inventory cost flow method will produce the highest ending inventory, Cost of Goods Sold, and Net Income? Be able to calculate Uncollectible Accounts Expense using the percent of sales method What is the effect on the financial statements of recognizing (i.e., recording) estimated uncollectible account expense? How do you calculate the Net Realizable Value of Accounts Receivable? If a company makes a loan to another entity, how do we record this transaction on the financial statements? How do we record the accrual of interest on the loan at the end of the accounting period (and how do we calculate the interest)? at the end of the loan period? How do we record the collection of the note and the interest at the end of the loan period?