Intermediate I T st 3 is used the uncolle tibleaccounts l Whentheallowancemethodof recognizing entriesat thetime ofcollectionofa smallaccountpreviouslywrittenoff A lncrcasenetincome accounts B Decrease theallowancefor uncolle tible Q Have no effect on the allowancefor uncollectibleaccounts DJ Increase the allowance for uncollectible accounts accounts expenseto be 37oof creditsales its uncollectible 2 ABC Co estimates Duringthe year ABC wroteoff ABC Screditsaleslor the yearwere 1 000 000 accounts allowance for uncollectible ABC s 15 000ofuncollectibleaccounts what hada 18 000balanceon January1 In its December3l incomestatement for uncollectible accounts repofi as allowance should ABC amount A 30 000 H 33 000 c 48 000 D 63 000 assetvaluation accounts thatemphasizes 3 A methodof estimatinguncollectible on allowance method based measurement is the I fherthanincome A Aging the receivables B Grosssales c Directwrite offs D Creditsalesminusretumsandallowances 4 ABC Companyhascashin bank of 42 000 a bank overdraftin an accountat account anotherbankof 3 000 pettycashof 50o rest ctedcashin a separate of 4 000 shortterm paperwith maturity of 1 month of 6 000 post datedchecks ofdeposittotaling 24 000 ABC should receivedtotaling 3 500 andcertificates reportcashof A 42 500 E 52 oo0 cl 48 500 D 72 500 financial entitymostlikely shouldcontioueto recognizea transferred 5 A transferor assetif A The hansfe ormayreacquiretheasset andthe assetis readilyobtainablein the market lhe a el and the The rransferor is enrilledandobligaledlo repurcha e B transferceleceivesa lender sreturn C The transfereemay sell the full fair value of the asset D The transferorhas an option to reacquirethe asset and the reacquisitionprice is fair value 6 XYZCo recordedc ale on Ma I I rr ooo nd s rooo lili i ii T T it 5 lf i orr rj ooo jHf 1 f lii ln g ylv u ou o fi ffi1 xJili t lT lf t 1 H illi f inl 1 im ft A 26 460 I I i t P 26 760 i cr 26 700 D 27 000 7 On January2 year 3 ABC Co sol i nxilfi i q rx ft i ii T ffi J f j r 1 X r ilii li4jx il i i l Ji Y ear r i ncome st aremen r ha i uur orrr ot lnn 9n iti H E S68 000 3 fi 333 lbr theequipment andthemarket 1 1i f 1 1 x f 8 FGH Co commcnced operation on lhe frr t dal o1 1L rrr nl e rr At year pn r t srecord indicared rhar 800 000 of sood i i i ll t ll llv 1 ending irvenrory u3 0o oiliilX T t hT I j ii lr l1 H i T a lmrf l l lfi l r fij1lft Trl opertttons musthtre been t8b 000 4 B 90 000 c 256 000 D 126 000 ti a 9 The following infomationpertainsto XyZ s accounts rcceivableat December 31 Year2 Ou r randinp rd Amount eoUnco ecribte 1 li E bu 240 000 9 tEa 61 t2O 130 000 27o Over 120 200 000 6Vo 620 000 During Year2 XyZ wroteoff 14 000in receivables andrecovered g 000that waswrittenoff in pdor years XyZ s Decemt I V i uflorv lL uncollectible accounts was 12 000 Undertfr girrg in a rvfrut i t shouldXYZ repofiasbaddebtexpense in it n i b 1 i ar Z in orn statement A 6 000 1t B 12 000 t l 18 ooo D 28 000 tO 1 tl I r ol O rt ing inventory atJanuary I wasundersrated by 52 fi 0 andirs l enorn g rnventory wasoverstated by 104 000 As a result ABi s costof goods soldfor theyearwas A Unde rated by 52 000 Understated by 9156 000 C Overstated by 52 000 D Overstated by 156 000 1 r i L I l Ordinarily whichinventorycostingmethodapproximates mostcloselvthe curent costfor eachof thefollowins cosr ofGgb Sqkl Endinsrnu nlory c LlJ FtrO B LIFO LIFO C FIFO D FIFO T 3 io 12 ABC Cory produced1 000unitsof irsproducr thatir soldfor cashro XyZ Corp agreed to repurchese ther Ooo on truiu p cln 0 1 1 l 1 i 1 1 ABC pnce at a future date The price soeci lo o onrut l lit il r li J Xt Tff i ff r j r andholdingcosrsincurrcdbv XyZ ABCsh ld il i ri r i o A Recording thesalein anordinary manner andremoving theinu nrorfi orn the balancesheet invenrory onrhebooksandrecording a valuarion a 1 i l1l l le account to berepofied asa reduction to theinu nroryu ouri on ifr tJtan sheet ratherthan recordinga sale C Recordingthesale removi ng theinventoryfrom thebalancesheet and the purcha e omirirmenr in rhenore ro thefim i i i r Eisclosrng 4 r r ijl liry andconrrnuing tocimytheinventory onth b i 1 13 A companylailed ro recorda valid sale of merchandisethat had beenshippedto a cu tomeral rhcendof the urrenr crr The mcrchandis fr a i p p lfie x c l u d e ldr o m I n e n r u r a t I h r e n j r n e c u r r e nyt e a r l her r r o r i l l unoersrate totalexpenses for thecurrentyear ltL i er lale net incomefor Ihe ufient a tt car U n d e r t J tl eo r d d l e l i l l l h ee n do f l h ec u r r e n t ear D Not affect net income for the currenryear 1 1 The following infomation was deriv ttot to ol2 accounting records ofABC tseginning invenroryrt o oSS Purchascs 475 000 Freighfin r0 000 Freighrout 30 000 Purchase retums 25 000 Endinginvenrory 145 000 ABC S2012costof saleswas A fBi c D 135 000 445 000 47s 000 460 000 i l ona based 31 Yearl was l 500 000 at December 15 ABc Co sinventory adj stmentfor the at costanduetoreanvnecessarv G el fotto ttli r nunoir noB rnipping qsq jr i oj osting 90 000 shippea 5 Year2 10 Year l asrecel edandiecoiieaonJanuary on December allnougn invenlory Goodsin lhe fuPplngareawerc9I ludedfrom billedtotheqr 11 u v r 2 Thesoods tffi Ji il or had ro Yearr acosr il il mber 2 Year2 for goods with a ABC sentan involceto a customeron January thecount The invoice ti GC i Sl0t0Q0thatwerenot inctqdedin point The goodswereput m iu A tt ft gooA tere sentFOB slilj inB J l tg on December lhehandsof theclu rier in lls l ecemDerrr rcar Whatamounl houldABC reponc in entory balancesheet A 1 s00 000 fB r 5eo ooo c 1 710 000 D I 740 000 themonthof Junewith l50 u tlt fll j i i T nt 16 ABCbegan the presents 00 Thefollowingschedule i iJ nsC ars eachunit at 7 of June Juf O pot ttu t ofthis item duringthemonth Prrchases OuantitxiReceived Date June5 4 20 200 f I June9 4 40 200 1 1n f l Junel 480 Unitssold 100 Y r r tq l5o i trl 1 225 riLI l I tr li zz 250 lr ABC u esraeud A 915 al luneJU lll oe LtrO inventor pricing theinventory 1oo l oM I c l L02s 5 l o8o followingitemsshouldbe includedin 17 Accordingto therletmethod whichof the thecostof inventory DiscountsNot Taken Purchase FreightCosts No Yes A Yes Yes B Yes No …