1. AAA Co. uses a periodic inventory system and has the following information in regard to its inventory:

Beginning inventory	350 units @ 14	$4,900
Purchase on January 25	450 units @ 15	6,750
Purchase on March 15	350 units @ 16	5,600
Purchase on October 2	550 units @ 17	9,350
Goods available for sale		$26,600

There are 800 units in ending inventory. What is the amount of the ending inventory using the FIFO method?

a $9,350

b $13,350

c $4,900

d $11,650

2. Plasma Inc. uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $610,000 during the year. Plasma has experienced bad debt losses of 3% of credit sales in prior periods. At the beginning of the year, Plasma has a credit balance in its Allowance for Doubtful Accounts of $5,100. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Plasma recognize for the year?

a $5,100.

b $23,400.

c $13,200.

d $18,300.

3. A gain on the disposal of an asset occurs when the:

a. asset's book value is greater than the selling price.

b. asset's cost is greater than the asset's accumulated depreciation.

c. accumulated depreciation is greater than the asset's book value.

d. selling price is greater than the asset's book value.