the related allowance account were $1,000,000 and $40,000,
respectively. Foster uses the percentage-of-receivables method to
estimate its allowance for uncollectible accounts. Accounts receivable
were estimated to be 5% uncollectible. What amount should Foster
record as an adjustment to its allowance for uncollectible accounts at
year-end?
12. A retailer failed to record a purchase of inventory on credit near
the end of the current year. The goods did arrive and were included in
the inventory count. The purchase will be recorded next year, when
the goods are paid for. As a result,
13. What is the current ratio as of December 31?
14. What was Brock's dollar-value LIFO inventory on December 31,
2004?
15. In its 2005 income statement, what amount should Kam report as
the cost of goods sold?
16. When the accounts receivable of a company are sold outright to a
company which normally buys accounts receivable of other
companies without recourse, the accounts receivable have been
Pledged.
17. What was the price index used to compute Bach's 2007 dollarvalue LIFO inventory layer?
18. Drew Co. uses the average cost inventory method for internal
reporting purposes and LIFO for financial statement and income tax
reporting.
19. What adjusting entry should Drew record to adjust from average
cost to LIFO on December 31, 2005?
20. When the FIFO inventory method is used during periods of rising
prices, a perpetual inventory system results in an ending inventory
cost that is