Author Question: The inventory data for an item for November are: Nov. 1 Inventory 20 units at 19 4 Sold 10 units 10 ... (Read 101 times)

littleanan · **on:** Jul 5, 2018

The inventory data for an item for November are: Nov. 1 Inventory 20 units at 19 4 Sold 10 units 10 Purchased 30 units at 20 17 Sold 20 units 30 Purchased 10 units at 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?
a. 610
b. 600
c. 590
d. 580

Question 2

Z Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:

Accounts receivable 50,000
Allowance for uncollectible accounts (1,000)
Net sales 200,000
Bad debts expense 0

The company estimates that 2 of net sales will be uncollectible. After the correct adjusting entry has been made, bad debts expense for the year will be:
A) 4,000.
B) 1,000.
C) 3,000.
D) 5,000.