Question
Using the data below, answer the following questions: 1. Under Armour uses first-in, first-out (FIFO) to account for its inventory. According to the consumer price
Using the data below, answer the following questions:
1. Under Armour uses first-in, first-out (FIFO) to account for its inventory. According to the consumer price index (CPI) the inflation rate in 2020 was 1.23% and the inflation rate in 2021 was 4.70%. If Under Armour used the last-in, first out (LIFO) method to account for its inventory, what would the impact on cost of goods sold have been in 2021?
a) COGS would have been the same under LIFO as under FIFO in 2021.
b) COGS would have been higher in 2021 under LIFO vs. FIFO.
c) COGS would have been lower in 2021 under LIFO vs. FIFO.
2. Is the ending balance of the Allowance for Doubtful Accounts higher, lower, or the same at the end of the 3Q 2023 than at the end of 2021?
a) same
b) lower
c) higher
OTE 3. ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company's allowance for doubtful accounts was established with information available as of September 30, 2022, including reasonable and supportable estimates of future risk. The following table illustrates the activity in the Company's allowance for doubtful accounts: Under Armour, Inc. and SubsidiariesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started