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1/ Excerpts from Huckabee Company's December 31, 2018 and 2017, financial statements are presented below:

	2018				2017
Accounts receivable	$	100,000			$	92,000
Merchandise inventory		78,000				92,000
Net sales		420,000				392,000
Cost of goods sold		260,000				240,000

Huckabee's 2018 receivables turnover (rounded to 2 decimal places) is:

Multiple Choice

• 2.71.

• 3.06.

• 4.38.

• 4.20.

2/As of December 31, 2018, Amy Jo's Appliances had unadjusted account balances in accounts receivable of $305,000 and $930 in the allowance for uncollectible accounts, following 2018 write-offs of $6,390 in bad debts. An analysis of Amy Jo's December 31, 2018, accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for 2018 should be:

Multiple Choice

• $6,390.

• $6,100.

• $5,170.

• None of these answer choices are correct.

3/ Nu Company reported the following pretax data for its first year of operations.

Net sales		2,970
Cost of goods available for sale		2,380
Operating expenses		800
Effective tax rate		30	%
Ending inventories:
If LIFO is elected		940
If FIFO is elected		1,080

What is Nu's gross profit ratio if it elects LIFO? (Round your answer to the nearest whole percentage.)

Multiple Choice

• 61%.

• 21%.

• 52%.

• 56%.

4/ Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:

	Ending Inventory
Year	At Current Cost				At Base Year Cost				Cost Index
1/1/2018	$	306,000			$	306,000				1.00
12/31/2018		339,560				326,500				1.04
12/31/2019		433,100				355,000				1.22

Under the dollar-value LIFO method, the inventory at December 31, 2019, should be

Multiple Choice

• $362,090.

• $355,000.

• $355,820.

• None of these answer choices are correct.

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