Know how to do LIFO, FIFO, weighted average inventory methods 1. Assuming that prices do rise over time (i.e., inflation), which inventory valuation methodology will always result in the highest net income for a company? 2. ABC is a reseller of goods. The following transactions took place during March for ABC as it pertains to inventory: March 1 Inventory Balance of 200 units purchased at $20/ Unit March 7 Purchased 200 units at \$22/Unit March 10 Sold 300 units at a price of $40/ Unit March 15 Purchased 100 units at $23/ Unit March 21 Sold 150 units at a price of $40/ Unit March 25 Purchased 100 units at \$24/Unit What is the COGS for the month of March assuming the company is using the Periodic LIFO methodology for inventory valuation? Chapter 7 (2 questions) - If ABC is using the % of sales method of estimating its bad debts OR If ABC is using the % of sales method of estimating its bad debts - know how to calculate the uncollectible amount and entries to bad debt expense