Financial Accounting: Inventory, Cost of Goods Sold, Receivables, and Sales Taxes

A retail store purchases 20 identical shirts at $15 each. Later, it sells 12 shirts for $25 each. Using the weighted-average method under a perpetual inventory system, what is the average cost per shirt after the purchase, and what is the cost of goods sold (COGS) for the 12 shirts sold? Use the formula: $\text{Average cost per unit} = \frac{\text{Beginning inventory cost} + \text{Purchase cost}}{\text{Total units}}$ $\text{COGS} = \text{Units sold} \times \text{Average cost per unit}$

Which inventory costing method assumes that the oldest inventory items are sold first, resulting in higher COGS during periods of rising prices? $\text{COGS}_{\text{FIFO}} = \text{Cost of oldest inventory} \times \text{Units sold}$

A business estimates that 5% of its Accounts Receivable will be uncollectible. If the total Accounts Receivable is $40,000, what is the required Allowance for Doubtful Accounts? $\text{Allowance for Doubtful Accounts} = \text{Accounts Receivable} \times \text{Estimated Uncollectible Percentage}$