Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial...
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Accounting
Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended May 31:
Cost
Retail
Sales
$
300,000
Inventory, May 1
$
137,400
$
198,000
Net purchases
$
184,800
$
273,000
Goods available for sale
$
322,200
$
471,000
Refer to the information above. Estimate the cost of the May 31 inventory using the retail method.
Select one:
a. $116,964
b. $137,400
c. $150,425
d. $204,000
2.
The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.
What is the "adjusted cash balance" at June 30?
Select one:
a. $3,900.
b. $3,093.
c. $7,600.
d. $2,400.
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