1. A company buys a $10,000 bond at 102 as an investment. The correct entry is _______________.

	a. debit investment in bonds and credit cash for $10,200
	b. debit investment in bonds and credit cash for $9,800
	c. credit investment in bonds and debit cash for $10,200
	d. credit investment in bonds and debit cash for $9,800

2. A company issues bonds having a stated value of $100,000 for $102,500. At maturity, the company will _______________.

	a. debit bonds payable for $100,000
	b. debit bonds payable for $102,500
	c. credit bonds payable for $102,500
	d. credit bonds payable for $100,000

3. A company uses the percentage-of-receivables method for establishing the bad-debt reserve. They want the reserve balance to equal 0.5% of debts 30 days old or less, 2% of debts aged 31 to 60 days, and 4% of debts aged over 60 days. An aging report shows $780,000 relating to the past month, $232,600 relating to the prior month, and $89,200 relating to more than two months ago. The balance in the reserve account before adjustment is $10,175. What is the adjusting journal entry?

	a. debit allowance for bad debts, credit bad-debt expense $1,945
	b. debit bad-debt expense, credit allowance for bad debts $12,120
	c. debit bad-debt expense, credit allowance for bad debts $1,945
	d. debit bad-debt expense, credit accounts receivable $1,945

4. A company is closing out the accounting period. The inventory balance at the beginning of the period was $222,750, and at the end of the period it was $215,600. Purchases of goods for resale during the period equaled $682,500. What was the cost of goods sold total?

	a. $682,500
	b. $689,650
	c. $675,350
	d. $905,250

5. A merchandising company has beginning inventory of 50 units with a total cost of $500. They have the following transactions during the month of January: 1/5 bought 10 units at $11.00 each; 1/8 bought 15 units at $11.25 each; 1/15 sold 8 units for $16 each; 1/22 bought 10 units at $11.50 each and sold 12 units for $16.50 each. The ending inventory is $693.75. What inventory costing method is the company using?

	a. weighted average
	b. FIFO
	c. LIFO perpetual
	d. LIFO periodic