Your company has 10o units in inventory, purchased at $16 per unit, that could be replaced for 14 A. The company should credit cost of goods sold for $20o B. The company should debit cost of goods sold for $1,40o. C. The company should credit inventory for $200. D. The company should debit inventory for $1,400 2. A store holding a "25% off" sale will probably experience gross profit than usual and sales volume. A. lower, higher B. higher; higher C. lower lower D. higher, lower 3. On January 31, 2016, the bank's records say that your company has $12,956.73 in its checking account. You are aware of three outstanding checks for a total of $2,655.20. During January 2016, the bank rejected two deposited checks from customers totaling $654.19 because of insufficient funds and charged you $12.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $12.00 of service fees. Prior to adjustment on January 31, 2016, your Cash account would have a balance of A. $10,955.72. B. $15,711.11 C. $10,202.35 D. $12,956.73 Which of the following statements is true? A. LIFO results in the same net income as FIFO when costs are decreasing. B. FIFO results in a lower net income than LIFO when costs are increasing C. LIFO results in a higher net income than FIFO when costs are increasing D. LIFO results in a higher net income than FIFO when costs are decreasing 5. Alphabet Company buys different letters for resale. It buys A thru J on January 1 at $4 per letter, and sells Con January 15. On February 1, it buys K and L at $6 per letter and sells A and K on February 9. It then buys M thru o on March 1 at $7 per letter and sells F, L, M, N, and o on March 19. If the company uses the LIFO method on a perpetual basis, what is the cost of goods sold for the three months ended March 31 (rounded to the nearest dollar)? A. $32 B. $41 C. $45 D. $56