$MC5-7.$

$MC5-8.$

$MC6-4.$

Target sells gift cards that can $be$ used $at$ any Target store $oron$ Target.com. Target encodes information $on$ each card's magnetic strip, including the card's value and the store where $it$ was purchased. Target gift cards $do$ not have expiration dates. How will Target's balance sheet reflect the gift card when $itis$ initially sold?

$a.Asan$ asset: cash and cash equivalents $c.As$ sales revenue

$b.Asan$ asset: allowance for product sales $d.As$ a liability: unearned revenue

Which $of$ the following statements $is$ true relating $to$ the allowance for sales returns?

$a.$ Sales returns are treated $asan$ expense $in$ the income statement and, therefore, reduce profit for the period.

$b.An$ excess $of$ the amount $by$ which the allowance for sales returns $is$ increased compared with the actual returns for the period indicates the company may have inflated profit for the period.

$c.$ The amount $by$ which the allowance for sales returns $is$ reduced during the period $is$ recognized $as$ a reduction $of$ sales for the period, thus reducing profit.

$d.$ Increasing the allowance for sales returns $byan$ amount that $is$ less than the actual returns recognized for the period may indicate either the company $is$ attempting $to$ increase profit for the period $orit$ estimates that less $of$ its products will $be$ returned $in$ the future.

A company's inventory records show the following information for the year.

What $is$ the LIFO inventory balance $at$ the end $of$ the year?

$a.$ $$119,000c.$ $$121,000$

$b.$ $$116,000d.$ $$115,500$