1- The journal entry in the buyer’s books to record the honoring by the seller of an account deemed uncollectible in a factoring agreement with recourse would include a

debit to Bad Debt Expense

debit to Allowance for Uncollectible Accounts

debit to Cash

debit to Loss on Factoring Agreement

2- BOZ Co. has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory follows: Estimated selling price $508,000 Estimated cost of disposal 20,000 Normal profit margin 60,000 Current replacement cost 455,000 BOZ records losses that result from applying the lower-of-cost-or-market (LCM) rule. At its year-end, what should be the net carrying value of BOZ’s inventory?

$500,000

$488,000

$455,000

None of the above is correct