XYZ Best Store uses a perpetual inventory system. It reported the following purchases and sales for its only product. Calculate the cost assigned to cost of goods sold using LIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	160 units @ $11
5	Purchase	225 units @ $13
10	Sales		145 units @ $21
15	Purchase	105 units @ $14
24	Sales		95 units @ $22

Multiple Choice

• $2,940

• $2,800

• $3,355

• $3,240

• $3,215

Many lawsuits are filed against General Motors each year due to injuries incurred by customers driving its cars. In General Motors' accounting records, these lawsuits:

Multiple Choice

• Should always be disclosed in footnotes to the financial statements.

• Should never be recorded as liabilities.

• Should always be recorded as current liabilities.

• Should be recorded as liabilities if payment for damages is probable and the amount can be reasonably estimated.

• Should always be reflected as long-term liabilities.

ABC Company has three partners whose capital balances at the beginning of the year are : Anna $200,000; Barbara $60,000; Clint $140,000. Partners agree to divide income and loss as follows:

a. Salary allowance of $40,000 to Anna, $30,000 to Barbara, and $20,000 to Clint;

b. Interest allowance of 10% on beginning-of-year capital balances; and

c. Any remaining balance to be divided equally.

Partnership net income is $160,000. The amount of partnership net income to be allocated to each partner is:

Multiple Choice

• Anna $60,000; Barbara $46,000; Clint $54,000

• Anna $63,333; Barbara $53,333; Clint $43,334

• Anna $80,000; Barbara $24,000; Clint $56,000

• Anna $53,333; Barbara $53,333; Clint $53,334

• Anna $70,000; Barbara $46,000; Clint $44,000

xyz Company has three partners whose capital balances at the beginning of the year are Julio $108,000; Karen $96,000; Lana $36.000. Partners agree to divide income and loss based on beginning of year capital balances. Partnership net income for 2019 was $210,000. The amount of partnership net income to be allocated to each partner is:

Multiple Choice

• Julio $63,000; Karen $63,000; Lana $84,000.

• Julio $80,000; Karen $80,000; Lana $80,000.

• Julio $94,500; Karen $84,000; Lana $31,500.

• Julio $70,000; Karen $70,000; Lana $70,000.

• Julio $108,000; Karen $96,000; Lana $36,000.

Fastest Horse Company has three partners whose capital balances at the beginning of the year are: Tom $15,000; Abigail $18,000; Sandra $17,000. Partners agree to divide income and loss as follows: a. Salary allowance to Tom of $42,000: Abigail of $33,000; and Sandra of $75,000; b. Any remaining balance is to be divided equally. Partnership net income is $129,000. The amount of partnership net income to be allocated to Tom is:

Multiple Choice

• ($7,000).

• $35,000.

• $49,000.

• $7,000.

• $38,700.

jack's Computer Store uses a periodic inventory system. The store reported the following purchases and sales of its only product. Calculate the cost assigned to the ending inventory using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	280 units @ $13
5	Purchase	285 units @ $15
10	Sales		205 units @ $23
15	Purchase	165 units @ $16
24	Sales		155 units @ $24

Multiple Choice

• $5,555

• $5,715

• $4,840

• $5,000

• $10,555

Number One Products is preparing its year-end adjusting entry to record uncollectible accounts. The following amounts are reported in its year-end unadjusted trial balance:

Accounts receivable	$	428,000	Debit
Allowance for Doubtful Accounts		1,420	Debit
Net Sales		2,270,000	Credit

All sales are made on credit. Based on past experience, Number One Products estimates that 3.0% of accounts receivable will be uncollectible. What adjusting entry should the company make at the end of its accounting year to record uncollectible accounts?

Multiple Choice

• Debit Bad Debts Expense $12,840; credit Allowance for Doubtful Accounts $12,840.

• Debit Bad Debts Expense $11,420; credit Allowance for Doubtful Accounts $11,420.

• Debit Bad Debts Expense $16,810; credit Allowance for Doubtful Accounts $16,810.

• Debit Bad Debts Expense $14,260; credit Allowance for Doubtful Accounts $14,260.

• Debit Bad Debts Expense $6,810; credit Allowance for Doubtful Accounts $6,810.