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Which of the following are classified as Accounts Receivable (more than one possible correct answer)? Monies that customers owe us from sale of merchandise. Loans

  1. Which of the following are classified as Accounts Receivable (more than one possible correct answer)?
    1. Monies that customers owe us from sale of merchandise.
    2. Loans we made to a customer.
    3. Tax refunds owed to us by the IRS.
    4. Monies that customers owe us for providing a service.

Accounts Payable

$55,000

Land

$90,000

Inventory

$10,500

Accounts Receivable

$7,500

Equipment

$8,000

Deferred Revenue

$58,500

Short-term Investments

$20,000

Notes Receivable (due in 8 months)

$45,500

Interest Payable

$2,000

Patents

$75,000

262) What is the total amount of property, plant, and equipment assuming the accounts above reflect normal activity?

A) $98,000. B) $110,000. C) $165,000. D) $90,000.

  1. Inventory records for ABC revealed the following:

Date

Transaction

Number of Units

Unit Cost

Apr. 1

Beginning inventory

500

$2.40

Apr. 20

Purchase

400

2.50

ABC sold 700 units of inventory during the month. Ending inventory assuming LIFO would be: A) $480. B) $500. C) $490. D) $470.

  1. A physical inventory count is necessary to calculate Cost of Goods Sold
    1. in Perpetual Inventory Accounting but not in Periodic Inventory Accounting
    2. in neither Periodic Inventory Accounting nor Perpetual Inventory Accounting
    3. in Periodic Inventory Accounting but not in Perpetual Inventory Accounting
    4. in both Periodic Inventory Accounting and in Perpetual Inventory Accounting

  1. ABC sells soccer goals to customers over the Internet. History has shown that 2% of ABC's goals will need repair under the warranty program. For the year, ABC has sold 4,000 goals and 45 have been repaired. If the estimated cost to repair a goal is $200, what would be the warranty liability at the end of the year?

A) $16,000. B) $0. C) $9,000. D) $7,000.

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