understatted overstated purchase Sales returns 4 Beginning inventory Freight out Purchase discounts Net income is A, undersated 16 B, Understated 26 Given the following information for the ABC company Inventory at end-of-year prices Price index Date $80,000 $120,000 $130,000 100 12/31/16 12/31/17 12/31/18 120 125 Using dollar-value LIFO, the 12/31/18 inventory for the balance sheet is approximately A, $109,000 , 104,000 C, 110,000 Given the following information for an inventory item of the ABC company $102 108 Cost Replacement cost 120 Estimated sales price Normal profit Cost of completion 13 Using the LCM rule, the proper inventory amount for the balance sheet is; A, 108 B, 101 C, 101 8 The abc company uses the allowance method to account for bad debts. How does the write- off of an account receivable affect retained earnings and the NRV of receivables, represcitvely? A. decrease, decrease No effect, no effect B