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Hutch, Inc. uses the conventional retail inventory method to
account for inventory. The following information relates to 2004
operations: What amount should be reported as cost of sales for
2004?
Question 13
Trans Co. uses a periodic inventory system. The following are
inventory transactions for the month of January: Trans uses the
average pricing method to determine the value of its inventory.
What amount should Trans report as cost of goods sold on its
income statement for the month of January?
Question 14
At December 31, 2004, Kale Co. had the following balances in the
accounts it maintains at First State Bank: Kale classifies
investments with original maturities of three months or less as
cash equivalents. In its December 31, 2004 balance sheet, what
amount should Kale report as cash and cash equivalents?
Question 15
Gar Co. factored its receivables without recourse with Ross Bank.
Gar received cash as a result of this transaction, which is best
described as a
Question 16
A material overstatement in ending inventory was discovered
after the year-end financial statements of a company were issued
to the public. What effect did this error have on the year-end
financial statements?
Question 17