Author Question: Under the inventory method, accounting records maintain a continuously updated inventory value. a. ... (Read 1070 times)

HCHenry · **on:** Jul 5, 2018

Under the inventory method, accounting records maintain a continuously updated inventory value.
a. retail
b. periodic
c. physical
d. perpetual

Question 2

Rusk, Inc. had the following balances at December 31, 2012, before recording any adjustments:

Sales 450,000
Accounts receivable 30,000
Allowance for uncollectible accounts 500 a positive number

Rusk estimated that 3,000 of the receivables would be uncollectible. The financial statements for the year ended December 31, 2012 will show:
A) Bad debts expense of 2,500 on the income statement.
B) Allowance for uncollectible accounts of (3,000) on the balance sheet.
C) Net accounts receivable of 27,000 on the balance sheet.
D) more than one of the above is correct.