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ACC 577 Week 3 Quiz ( 100 % Correct Answers )
The following costs pertain to Den Co .' s purchase of inventory : What amount should Den record as the cost of inventory as a result of this purchase ? Question 18 Loft Co . reviewed its inventory values for proper pricing at year-end . The following summarizes two inventory items examined for the lower of cost or market : What amount should Loft include in inventory at year-end , if it uses the total of the inventory to apply the lower of cost or market ? Question 19 On January 1 , 2004 , Card Corp . signed a three-year , noncancelable purchase contract , which allows Card to purchase up to 500,000 units of a computer part annually from Hart Supply Co . at $. 10 per unit and guarantees a minimum annual purchase of 100,000 units . During 2004 , the part unexpectedly became obsolete . Card had 250,000 units of this inventory at December 31 , 2004 and believes these parts can be sold as scrap for $. 02 per unit . What amount of probable loss from the purchase commitment should Card report in its 2004 income statement ? Question 20 Mill Co .' s allowance for uncollectible accounts was $ 100,000 at the end of 2005 and $ 90,000 at the end of 2004 . For the year ended December 31 , 2005 , Mill reported bad debt expense of $ 16,000 in its income statement . What amount did Mill debit to the appropriate account in 2005 to write off actual bad debts ?

ACC 577 Week 3 Quiz ( 100 % Correct Answers )

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