Reference no: EM132490393

Question 1: The accepted method for valuing inventory includes

Select one:

A. Counting the units of each product on hand

B. Adding the costs for all products

C. Multiplying the count for each product by its cost per unit

D. Counting the units of each product on hand and multiplying the count for each product by its cost per unit

E. All of the above

Question 2: TechCom ages its accounts receivables to determine the end of the period adjustment for bad debts. At the end of the year, management estimated that $12,750 of the accounts receivable balances would be uncollectible. The Allowance for Doubtful Accounts had a debit balance of $175. What entry should TechCom make at the end of the year, for the estimated bad debts expense?

Select one:

A. Bad Debts Expense12,575 Allowance for Doubtful Accounts 12,575

B. Accounts Receivable12,925 Allowance for Doubtful Accounts 12,925

C. Bad Debts Expense12,925 Allowance for Doubtful Accounts 12,925

D. Accounts Receivable12,750 Bad Debts Expense175 Sales 12,925

E. Bad Debts Expense12,750 Allowance for Doubtful Accounts 12,750

Question 3: DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value.

Select one:

A. $1,500

B. $1,350

C. $1,400

D. $2,000

E. $1,800