RJ Corporation Has Provided the Following Information About One of Its

question 88

Multiple Choice

RJ Corporation has provided the following information about one of its inventory items: $\begin{array}{clrr}\text { Date }&\text { Transaction } &\text { Number of Units }&\text { Cost per Unit }\\\hline1 / 1 & \text { Beginning Inventory } & 400 & \$ 3,200 \\6 / 6 & \text { Purchase } & 800 & \$ 3,600 \\9 / 10 & \text { Purchase } & 1,200 & \$ 4,000 \\11 / 15 & \text { Purchase } & 800 & \$ 4,200\end{array}$ During the year, RJ sold 3,000 units. What was cost of goods sold using the FIFO cost flow assumption under a periodic inventory system?

• A) $11,680,000.
• B) $11,590,000.
• C)$11,480,000.
• D)$11,550,000.

Understand the estimation of bad debt expense based on historical relationships and its impact on financial statements.

Recognize the advantages and appropriate application of the net price method for recording cash discounts on credit sales.

Analyze the treatment of uncollectible accounts under different accounting methods and the conceptual rationale behind these methods.

Comprehend the accounting for sales of accounts receivable, including factoring and assignment, and its impact on financial statements.