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 21. Nomar Co. shipped inventory on consignment to Seabright Co. that cost $ 20,000. Seabright paid $ 500 for advertising that was reimbursable from Nomar. At the end of the year, 70 % of the inventory was sold for $ 30,000. The agreement states that a commission of 20 % will be provided to Seabright for all sales. What amount of net inventory on consignment remains on the balance sheet for the first year for Nomar?
22. When an inventory overstatement in year one counterbalances in year two, this means:
23. If ending inventory for 20x5 is understated because certain items were missed in the count, then: