1. Destiny Inc. just began business and made the following four inventorypurchases in June:June 1 200 units $ 1,100June 10 300 units 1,680June 15 150 units 855June 28 50 units 295$3,930A physical count of merchandise inventory on June 30 reveals that there are 220units on hand. Using the FIFO inventory method, the amount allocated to endinginventory for June isa. $1,212.b. $1,100.c. $1,170.d. $1,262.2. Inventory becomes part of cost of goods sold when a companya. pays for the inventory.b. purchases the inventory.c. sells the inventory.d. receives payment from the customer.3. The following information was taken from Corey Company’s cash budget for themonth of April:Beginning cash balance $38,000Cash receipts 42,000Cash disbursements 49,000If the company has a policy of maintaining end of the month cash balance of$35,000, the amount the company would have to borrow isa. $4,000.b. $3,000.c. $7,000.d. $0.4. In the table below the information for four companies is provided.Company Accounts ReceivableturnoverAverage collection periodMartin 14.8 24.7Lewis 13.3 27.4Danforth 10.4 35.1Garner 14.5 25.2Industry Average 13.0 28.1Assuming all four companies are in the same industry, which company appearsto have the greatest likelihood of paying its current obligations?a. Martinb. Lewisc. Danforthd. Garner5. A credit sale of $3,000 is made on May 4th, terms 2/10, n/30. What amount isreceived as payment in full on May 12th?a. $2,700b. $2,940c. $3,000d $3,1506. A $400 petty cash fund has cash of $98 and receipts of $290. The journal entryto replenish the account would include aa. debit to Cash Over and Short for $12b. credit to Petty Cash for $298.c. debit to Cash for $290.d. credit to Cash for $290.7. At December 31, 2015 Mohling Company’s inventory records indicated a balanceof $580,000. Upon further investigation it was determined that this amountincluded the following:- $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/15 terms FOB destination, but not due to be received until January 2nd- $6,000 of goods received on consignment from Dollywood CompanyWhat is Mohling’s correct ending inventory balance at December 31, 2015?a. $462,000b. $594,000c. $410,000d. $484,0008. Layton Industries recorded the following events involving a recent purchase of inventory:Received goods for $100,000, terms 3/15, n/30.Returned $5,000 of the shipment for credit.Paid the invoice within the discount period.Paid $1,000 freight on the shipment.As a result of these events, the company’s inventorya. increased by $96,000.b. increased by $93,000.c. increased by $95,000.d. increased by $93,150.9. Assets purchased for resale are recorded in which of the following accounts?a. Suppliesb. Inventoryc. Equipmentd. More than one of these answer choices is correct.10. Sales revenues are usually considered earned whena. cash is received from credit sales.b. an order is received.c. title to goods have been transferred from the seller to the buyer.d. adjusting entries are made.11. Financial information is presented below:Operating expenses $ 52,000Sales revenue 210,000Cost of goods sold 145,000Gross profit would bea. $158,000.b. $ 89,000.c. $ 65,000.d. $ 13,000.12. Jenn’s Fountain Pens Inc. has the following inventory data:Sept. 1 Inventory 80 units @ $4.00 each8 Purchase 100 units @ $4.30 each17 Purchase 40 units @ $4.20 each25 Purchase 80 units @ $4.40 eachA physical count of merchandise inventory on September 30 reveals that thereare 100 units on hand; therefore, 200 units were sold. Cost of goods sold underLIFO isa. $834b. $406c. $421d. $86413. Financial information is presented below:Operating expenses $ 35,000Sales returns and allowances 12,000Sales discounts 4,000Sales revenue 140,000Cost of goods sold 85,000The amount of net sales on the income statement would bea. $128,000.b. $125,000.c. $137,000.d. $124,000.14. Cooper Company purchases a new delivery truck for $50,000. The sales taxesare $2,500. The logo of the company is painted on the side of the truck for$1,200. The truck’s annual license is $150. What does Cooper record as the costof the new truck?a. $53,700.b. $52,500.c. $51,200.d. $53,850.15. Wilton sells softball equipment. On November 14, they shipped $3,000 worth ofsoftball uniforms to Paola Middle School, terms 2/10, n/30 FOB shipping point.On November 20, Paola Middle School returned $300 of defective merchandise.No customer payments have been received by Wilton. What amount will berecognized as accounts receivable on the balance sheet as of November 30?a. $2,940b. $2,646c. $3,000d. $2,70016. At the beginning of the year, Panther Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Panther Athletic reported ending inventory of $400,000 and sales of $1,000,000, their cost of goods sold and gross profit rate would bea. $500,000 and 10% b. $700,000 and 30%.c. $600,000 and 40%.d. $700,000 and 60%.17. An error in the physical count of goods on hand at the end of a period resulted ina $10,000 understatement of the ending inventory. The effect of this error in thecurrent period isCost of Goods Sold Net Incomea. Understated Understatedb. Overstated Overstatedc. Understated Overstatedd. Overstated Understated18. The LIFO reserve isa. the difference between the value of the inventory under LIFO and the valueunder FIFO.b. an amount used to adjust inventory to the lower of cost or market.c. the difference between the value of the inventory under LIFO and the valueunder average cost.d. the amount used to adjust inventory to history cost.19. The following information was available for Bowyer Company at December 31,2015: beginning inventory $80,000; ending inventory $70,000; cost of goods sold$880,000; and sales $1,200,000. Bowyer’s inventory turnover in 2015 wasa. 16.0 times.b. 11.0 times.c. 12.6 times.d. 11.7 times.20. Barlett Company gathered the following reconciling information in preparing itsMarch bank reconciliation:Cash balance per bank, 3/31 $30,800Cash balance per books, 3/31 $20,840Deposits in transit 900Bank charge for check printing 120Outstanding checks 12,000NSF check 1,020The adjusted cash balance on March 31 isa. $19,860.b. $24,060.c. $19,700.d. $20,840.21. A company purchased factory equipment on June 1, 2015, for $96,000. It isestimated that the equipment will have a $6,000 salvage value at the end of