2. Which of the following is recorded by a credit to Accounts receivable? A. Sal

Question

2. Which of the following is recorded by a credit to Accounts receivable? A. Sale of inventory on account. B. Estimating the annual allowance for uncollectible accounts C. Making cash payment. D. Write-off of bad debts. 3. Accrued expenses: A. Are generally paid in services rather than in cash. B. Result from payment made before services are received. C. Result from services received before payment made. D. Are deferred charges to expense. 4. Fulbright Corp, uses the periodic inventory system. During its first year of operations,i made the following purchases (listed in chronological order of acquisition) 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year Ending inventory using the FIFO method is: A. $650 B. $1,000 C. $707 D. $600.

Explanation / Answer

2.

Option A , sale of inevntory on account .

3.

Option C, Results from services before payament is made.

4.

Ending inventory of 10 units will be from lot last recieved thererfore value shall be 10 * 60 i.e. 600

Option D is correct.

5

option C is correct.

Cash discount has to be recorded in book as expense. Therefore Cash discount of 8000* 2 % i.e. 160 is debited.

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