1-

A business recently sold goods on credit (on account) to a credit customer for $96,000. If has been reliably informed that 25% of this will not be paid. Which of the following statements is/are correct regarding the correct journal for double entry?

I Debit Sales A/c with $24,000; and Credit Bad Debts Written Off A/c with $24,000

II Debit Bad Debts Written Off A/c with $24,000; Credit Receivables with $24,000

Select one:

a.

Only Statement II is correct

b. Both (I) and (II) are incorrect

c. Both (I) and (II) are correct

d.

Only Statement I is correct

2-

Assume that the owner of a start-up business introduced $62,000 cash as equity and withdrew $28,000. Total Expenses were $143,000. Net Sales Revenue was $214,000. . What was the amount of the Closing Balance for Equity?

Select one:

a. $105,000

b. $110,000

c. $118,000

d. None of the answers provided are correct

3-

A business purchased and paid cash for goods/supplies valued at $7,900. Which of the following journal entries would be recorded if the company uses accrual basis accounting?

I Debit Purchases A/c with $7,900

II Credit Cash A/c with $7,900

Select one:

a. Both (I) and (II) are correct

b.

Only Statement II is correct

c.

Only Statement I is correct

d. Both (I) and (II) are incorrect