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The gross profit method is used along with inventory counts to determin inventory value most often with a berpectual inventory system most often with a periodic inventory system None of the other answers is correct On June 1, KK Inc. reaches an agreement with a customer to convert $10,000 of overdue accounts receivable (A/R) to an interest-bearing note. The rate is 12% annually, and all is to be paid off in 6 months. The June 1 entry to record the conversion is: [Select) : [Select) [Select) The direct write-off method for Accounts Receivable bad debts is consistent with direct method revenue recognition accrual accounting cash basis accounting None of the other answers Purchases were made on account on August 5th in the amount of $200,000 with terms of 1/10,n/30. The face amount was recorded in the accounts. The bill was paid on August 14th. In a perpetual inventory system the journal entry to record the payment would include a debit to Accounts Payable for $99,000 a credit to Cash for $100,000 a credit to Inventory for $1,000 a credit to Accounts Receivable for $100,000 a credit to Inventory for $2,000 When the current net realizable value of inventory is less than its cost, it is written down to OD. FIFO or LIFO value, depending on the method used net realizable value average cost cost minus net realizable value

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