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THR a Receivable has a balance of $430,000 and the Allovance for ACCOUNTS ARE CL

ID: 2520131 • Letter: T

Question

THR a Receivable has a balance of $430,000 and the Allovance for ACCOUNTS ARE CLOBED at the end ot the fiacal year Account DeubtEui Accounta has a balance ot $25,000 hat is the NET REALIZABLE VALUE ot accounts receivable? A. 25,000 B. 405,000 C. 430,000 D. 455,000 7. If A sells to B, and B obtains title while goods are in transit, the gooda were shipped unt the goods arrive at D's door then the gooda were ahipped If c sella to D, and C maintains title A. FOB shipping point: FOB destination B. POB destination: POB shipping point c. FOB destination ; FOB destination D. POB shipping point: POB shipping point USE THE FOLLOWING INPORMATION TO ANSWER QUESTIONS 8-9 Iggy, Ine. sella jeane. During 20x2, the inventory recorda for jeans show the following activity 8 pairs $20 ea$160 4 pairs $25 ea 100 7 pairs $30 ea210 4 pairs$30 ea120 Beginning inventory purchase Tune 18th December 7th purchase Total sales for the year were: 11 pairs ?. Using the PIPO method, COST OF GOODS SOLD for 20X2 is A. 690 B. $45s C 250 D. $235 9. Ueing the LIPO method, the coST OF GOODS SOLD for 20x2 is A. 690 B. 360 ?. $330 D. $ 235

Explanation / Answer

6)net realisable value of account receivable is

$4,30,000-$25,000

$4,10,000

Therefore answer is option (B)

7)If A sells to B, and B obtains title while goods are in transit, the goods were shipped FOB shipping point .If C sells to D, and C maintains title until the goods arrive at D's door then the goods were shipped FOB destination.

Therefore answer is option (A)

8)cost of goods sold using fifo is=

=(8pairs*20ea)+(3pairs*25ea)

=235$

Therefore answer is option (D)

9)cost of goods sold under LIFO method is

=(4pairs*30ea)+(7pairs*30ea)

=$330

Therefore answer is option(C).