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Posted: November 3rd, 2023
PalmTwo has PDA Model X11 inventory on its books at a cost of $35,000
1.PalmTwo has PDA Model X11 inventory on its books at a cost of $35,000. The market value of this inventory on December 31 was $33,000. Which of the following statements is true?a. The inventory should be recorded at $35,000.b. The inventory should be recorded at $33,000.c. The inventory should be recorded at $33,000 only if it is not sold within a reasonable period.d. PalmTwo must use FIFO.2.Which of the following equations computes cost of goods sold?a. Purchases + beginning inventory + ending inventory = cost of goods sold.b. Purchases + beginning inventory = cost of goods sold.c. Purchases - ending inventory = cost of goods sold.d. Purchases + beginning inventory - ending inventory = cost of goods sold.3. Bad debt expense is a(n):a. Contra expenseb. Part of Cost of Goods Soldc. Operating expensed. Contra asset4. How should a company record freight cost on goods purchased?a. Add to inventory purchases.b. Subtract from cost of goods sold.c. Add to cash.d. Add to accounts receivable.
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