Name Accounting 1A-Final Esam Maltiple Choles TThe folkow ing kots of a particul

Question

Name Accounting 1A-Final Esam Maltiple Choles TThe folkow ing kots of a particular commondity were available for sale durin the year 10 units at 560 25 unis s6s 30 units at 568 15 units at $75 First purchase Third purchase The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the yur What is the amount of the inventory at the end of the year using the FIFO methwod? a. $1,575 b. $1,805 e. $1,685 d. $3,585 2. What is the amount of the inventory at the end of the year using the LIFO method? a. $1,8os b. $1,685 c. $1,575 d· $3,815 3. A 60day, 12% note for $7,000, dated April 15, is received from a customer on account. The face v the note is a. $7,840 b. $6,860 c. $7,140 d. $7,000 4. To record estimated uncollectible receivables using the allowance method, the adjusting entry debit to Loss on Credit Sales and a credit to Accounts Receivable. b. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts a. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. d. debit to Bad Debs Expense and a credit to Allowance for Doubtful Accounts c. The accounting cycle requires three trial balances be done. In what order should they be a. Post-closing, unadjusted, adjusted b. Unadjusted, post-closing, adjusted c. Unadjusted, adjusted, post-closing . Post-closing, adjusted, unadjusted

Explanation / Answer

Solution 1:

Under FIFO, Ending inventory will consist of 15 units from thrid purchase and 10 units from second purchase.

Value of ending inventory = (15*$75) + (10*$68) = $1,805

Hence option b is correct.

Solution 2:

Under LIFO, ending inventory will consist of 10 units from beginning inventory and 15 units from first purchase.

Value of ending inventory = (10*$60) + (15*$65) = $1,575

Hence option c is correct.

Solution 3:

The face value of note is $7,000. Hence option d is correct.

Solution 4:

To record estimated uncollectible receivables, the adjusting entry is "Debit to bad debts expense and a credit to allowance for doubtful accounts"

Hence option d is correct.

Solution 5:

The order of trial balances are "Unadjusted, Adjusted, Post closing"

Hence option c is correct.

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