On December 30 , 2004 , Astor Corp . sold merchandise for $ 75,000 to Day Co . The terms of the sale were net 30 , FOB shipping point . The merchandise was shipped on December 31 , 2004 , and arrived at Day on January 5 , 2005 . Due to a clerical error , the sale was not recorded until January 2005 and the merchandise , sold at a 25 % markup , was included in Astor ' s inventory at December 31 , 2004 . As a result , Astor ' s cost of goods sold for the year ended December 31 , 2004 , was Question 2 Foster Co . adjusted its allowance for uncollectible accounts at year end . The general ledger balances for the accounts receivable and 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 ? Question 3 Jones Wholesalers stocks a changing variety of products . Which inventory costing method will be most likely to give Jones the lowest ending inventory when its product lines are subject to specific price increases ? Question 4 Fenn Stores , Inc . had sales of $ 1,000,000 during December 2004 . Experience has shown that merchandise equaling 7 % of sales will be returned within 30 days and an additional 3 % will be returned within 90 days . Returned merchandise is readily resalable . In addition , merchandise equaling 15 % of sales will be exchanged for merchandise of equal or greater value . What amount should Fenn report for net sales in its income statement for the month of December 2004 ? Question 5 During January 2004 , Metro Co ., which maintains a perpetual inventory system , recorded the following information pertaining to its