Please 4,5and 6 just true or false and I just want the correct answer for the mu
ID: 2550232 • Letter: P
Question
Please 4,5and 6 just true or false and I just want the correct answer for the multiple choice . 3. In specifying credit terms, 10, 1D30 balance due in 30 days. amount reflects the most recent Under the periodic LIFO method of nventory costing, the inventory purchases. 4. of an accounting period, the "cash balance per bank statement" on that date is usually the proper At the end cash amount to show on the balance sheet. 5. 6. Outstanding checks are checks a company has written and recorded as cash disbursements that have not y been presented to the bank for payment. Multiple Choice Identify the etter of the choice that best completes the statement or answers the question. If a firm's beginning inventory is $35,000, purchases are $160,000, and the cost of goods sold is $150,000 what is its ending inventory? 7. $45,000 b. $130,000 c. $15,000 d. $165,000 8. On which financial statement would you look to find the total cost of goods sold? a. Statement of stockholders' equity Statement of cash flows b. cIncome statement Balance sheet 9. Using a perpetual inventory system, the journal entry, on the purchaser's books (not the seller), to re return of merchandise purchased on account includes a: a. Credit to Accounts Payable b. Credit to Inventory c. Credit to Sales d. Credit to Cost of Goods Sold 10. When merchandise that was sold on account is returned, using the perpetual inventory system which are affected in the books of the seller? Sales returns, accounts receivable, purchases, and inventory b. Sales returns, accounts receivable, purchases, and cost of goods sold c. Cash, accounts receivable, cost of goods sold, and sales returns d. Sales returns, accounts receivable, inventory, and cost of goods sold a.Explanation / Answer
4. “FALSE”.
This is because LIFO (or last in first out) means that units are sold from the most recent purchases. This makes the ending inventory comprise mainly of earliest purchases.
5. “FALSE”.
This is because cash balance per bank statement will have to be adjusted for items like outstanding checks and deposit in transit. It is only after adjustments that the amount is shown in the balance sheet.
6. “TRUE”.
Outstanding checks have not yet been presented and as such are deducted from the given bank balance to determine the adjusted bank balance.