1. Which of the following inventory costing methods yields the lowest cost of goods sold when costs are rising during the accounting period?
Specific-unit-cost
Average-cost
Last-In, First-Out
First-In, First-Out
2. A company that uses periodic inventory provides the following information:
Beginning inventory $4,000
Purchases $120,000
Purchase discounts $2,400
Purchase returns and allowances $800
At the end of the period, the company does an inventory count and finds $16,000 of inventory on hand. How much is the Cost of goods sold?
$104,800
$111,200
$108,000
$128,800
3. Under the direct write-off method, a customer who doesn't pay their bills is written off with what journal entry?
Debit Accounts receivable and credit Uncollectible account expense.
Debit Uncollectible account expense and credit Cash.
Debit Uncollectible account expense and credit Accounts receivable.
Debit Lost revenue and credit Accounts receivable.
4. The bank charged a service fee of $20. How would this information be included on the bank reconciliation?
A deduction on the bank side
An addition on the book side
A deduction on the book side
An addition on the bank side
5. A company uses the perpetual inventory method. Which of the following entries would be made to record a purchase of inventory on account?
The accounting entry would be a debit to Purchases and a credit to Accounts payable.
The accounting entry would be a debit to Accounts payable and a credit to Purchases.
The accounting entry would be a debit to Inventory and a credit to Accounts payable.
The accounting entry would be a debit to Accounts payable and a credit to Inventory.