Use the following information for the next 3 questions. Jimbos buys spicy hot dogs in bulk and sells them to street vendors. The owners January inventory transactions are as follows:

1/1Beginning inventory2,000 cases at $10/case

1/8Sales1,700 cases

1/11Purchases1,000 cases at $11/case

1/14Sales1,100 cases

1/21Purchases1,200 cases at $12/case

1/26Sales1,100 cases

11.

Assuming the perpetual FIFO inventory method is used from inception, the amount of Cost of Goods Sold for the 1/14 sale would be

$11,000.

$11,800.

$12,000.

$12,100.

none of these

12.

Assuming the perpetual LIFO inventory method is used from inception, the amount of Cost of Goods Sold for the 1/14 sale would be

$11,000.

$11,800.

$12,100.

$13,200.

none of these

13.

Assuming the perpetual LIFO inventory method is used from inception, determine the cost of Jimbo's ending January inventory.

$300

$3,000

$3,200

$3,600

none of these

14.

In a period of deflation (i.e. the per unit cost of inventory purchases decreases over time), which inventory method will produce the highest ending inventory balance for that period assuming not all inventory is sold?

FIFO

LIFO

Moving Average

All methods would generate the same ending inventory balance.

15.

In 20X5 a company had sales revenues of $550,000, of which 70% was on account. At 12/31/X5 the following ending balances before adjustment were available:

DR CR

.Accounts Receivable $70,000

.Allowance for Uncollectible 700

Accounts

The Accounts Receivable aging reflects:

Balance % estimated to be Uncollectible

Current 38,000 2%

1-30 days past due 12,000 4%

31-60 days past due 9,000 10%

over 60 days 11,000 30%

Given the information above, the 12/31/X5 adjusting entry for uncollectible accounts based on the aging percentages provided would include a debit to Bad Debt Expense of

$6,140.

$5,440.

$4,740.

$5,000.

none of these

Which of the following is true of the Allowance for Uncollectible Accounts account?

.It is a "nominal" or income statement account.

.It is a contra-revenue account.

.It may have a debit balance at year endfollowingthe adjustment for estimated uncollectible accounts receivable.

.Its balancefollowingthe year end adjustment should reflect an estimate of the amount of ending accounts receivable that will ultimately prove to be uncollectible..

.none of these

17.

A debit balance in the Allowance for Uncollectible Accounts account before the year end adjustment for the current year's uncollectible accounts expense means

.that the prior year's estimated uncollectible accounts receivable must have been overestimated.

.that the prior years estimated uncollectible accounts receivable must have been underestimated.

.that the current years write-offs of uncollectible accounts receivable were less than the prior year's ending allowance for uncollectible accounts balance.

.that the direct write-off rather than the allowance method was used to account for uncollectible receivables.