Question

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Question 9

If the cost of an item of inventory is $80 and the current replacement cost is $70, the amount included in inventory according to the lower of cost or market is

$10

$70

$150

$80

Question 11

On the basis of the following data, what is the estimated cost of the merchandise inventory on October 31 by the retail method?

		Cost	Retail
Oct. 1	Merchandise Inventory	$225,000	$324,500
Oct. 1-31	Purchases (net)	335,000	375,500
Oct. 1-31	Sales (net)		600,000

$172,000

$80,000

$ 70,000

$140,000

Question 12

If the estimated rate of gross profit is 40%, what is the estimated cost of the merchandise inventory on June 30, based on the following data?

June 1	Merchandise inventory	$  75,000
June 1-30	Purchases (net)	150,000
June 1-30	Sales (net)	100,000

$ 81,500

$125,000

$144,000

$ 165,000

Question 16

Allowance for Bad Debts has a credit balance of $800 at the end of the year (before adjustment), and an "aging of receivables" indicates we have uncollectible accounts of $15,000. Which of the following entries would correctly record the adjustment to allowance for Bad Debts?

debit Allowance for Bad Debts, $800; credit Bad Debts Expense, $800

debit Bad Debts Expense, $800; credit Allowance for Bad Debts, $800

debit Bad Debts Expense, $14,200; credit Allowance for Bad Debts, $14,200

debit Allowance for Bad Debts, $15,800; credit Bad Debts Expense, $15,800

Answer 1

9)

The lower of cost or market value means the inventory is valued at at the lower of its historical cost or its current market (replacement cost.

Lower of cost $80 or replacement cost $70 is $70. Hence, the amount included in inventory according to the lower of cost or market is $70.

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Pls ask separate question for other problems