Which of the following is not a significant difference between the allowance method and the direct write-off method?

Poole Company purchased two identical inventory items. One of the items, purchased in January, cost $20. The other, purchased in February, cost $22. One of the items was sold in March at a selling price of $40. Poole uses LIFO. Which of the following statements is true?

Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity.After accruing all interest expense due as of April 1, Year 1, Baltimore Company made the cash payment for the full amount due (i.e., principal and interest) to Bank of the Chesapeake. How does the cash payment affect Baltimore’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net Incomea.(9,450)=(9,450)+ − = (9,000) FA,(450) FAb.(8,550)=(8,550)+ − = (8,550) FAc.(9,000)=(9,000)+ − = (9,000) FAd.(9,000)=(9,000)+ − = (8,550) FA,(450) OA

Which of the following is the term commonly used to describe the practice of reporting the net realizable value of receivables in the financial statements?

Which inventory costing method will produce an amount for cost of goods sold that is closest to current market value?

Spokane Company called in bonds at a price that was above the carrying value of the bond liability. Which of the following shows how this event will affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expenses=Net IncomeA.Increase=Increase+ − = Increase FAB.Decrease=Decrease+Decrease −Increase=DecreaseDecrease IAC.Decrease=Decrease+Decrease −Increase=DecreaseDecrease FAD.Decrease=Decrease+ −Increase=DecreaseDecrease FA

On January 1, Year 1, Niagara Corporation arranges a $6,000 line of credit with Centennial Bank. It accepted the bank’s offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and repayments are to take place on January 1 of each year.Niagara begins its loan transactions with Centennial Bank by borrowing $2,000 on January 1, Year 1. Which of the following shows the effect of this event on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.2,000=2,000+ − = 2,000 IAB.2,000= +2,0002,000− =2,0002,000 IAC.2,000= +2,0002,000− =2,0002,000 OAD.2,000=2,000+ − = 2,000 FA

Hoff Company uses the allowance method. An account that had been previously written-off as uncollectible was recovered. How do the two parts of the recovery (reinstate receivable and collect the receivable) affect the elements of the financial statements when the two parts are considered together?

What is the term used to describe the amount of accounts receivable that is actually expected to be collected?

Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.50 each. During the period, the company purchased inventory items as follows: PurchaseNumber of ItemsCost1360$3.002120$3.10360$3.50 Glasgow sold 380 units after purchase 3 for $9.60 each.What is Glasgow’s ending inventory under weighted-average?Note: Round your intermediate computation to 2 decimal places.