SECTION A There are S/X (6) questions in this section. You must answer ALL questions. Question 1 plain briefly the difference between two separate approaches to accounting for 4 debts, Include in your answer a conclusion on which method should be used by entities with a material amount of bad debts. 5 marks/ b Name two methods of revenue recognition other than at the point of sale or delivery. [2 marks] C Name three broad objectives of internal control. [3 marks] [Total for Question 1 - 10 marks] Question 2 K. Mckie owns a business that imports and sells chairs. All purchases and sales are on credit On 1 July 2012 the business held 20 units of inventory (chairs) that had previously been purchased at a cost of $303 each. The following selected transactions occurred during the month of July: July 4 Purchased 30 chairs @ $305 each 12 Sold 20 chairs @ $670 each Purchased rchased 40 chairs @ $308 each 26 Sold 45 chairs @ $675 each Assume that the business has a perpetual inventory system. a Calculate the cost of closing inventory for the month using the FIFO assumption [3 marks b Calculate COGS for the month using the FIFO assumption. [3 marks/ Assume the business uses LIFO for items (c) and (d) below: c A stock count at the end of July 2012 revealed that there were only 23 chairs on hand and that because one of these was damaged, it could only be sold for $240. Complete the journal entries relevant to this information. [4 marks] Calculate Gross Profit of K. Mckie for July 2012. id 14 marks] [Total for Question 2 = 14 marks] continued