1. A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the Last-In, First-Out inventory costing method, what is the amount of ending inventory on December 31?
$1,500
$1,250
$1,000
$2,250
2. An asset costs $80,000 and has a salvage value of $7,000. It has a four-year life. Using double-declining-balance depreciation, Year 2 depreciation would be:
$15,000.00.
$15,437.50.
$20,000.00.
$18,250.00.
3. Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. How much cash was received from the customer?
$8,000
$8,730
$7,760
$2,260
4. A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10, net/30. Which of the following entries would be made to record the payment if it is made within 10 days?
$1,000 debit to Accounts payable and a $1,000 credit to Cash
$1,000 debit to Accounts payable, a $20 credit to Inventory and a $980 credit to Cash
$20 debit to Inventory, a $1,000 debit to Accounts payable and a $1,020 credit to Cash
$980 debit to Accounts payable, a $20 debit to Inventory and a $1,000 credit to Cash
5. On October 1, 2014, Allen Jewelry Company accepted a 4-month, 10% note for $2,400 in settlement of an overdue account receivable. If the company accrues interest at year-end only, how much interest revenue should be accrued on December 31, 2014?
$80
$60
$240
$40