1. Cullumber Roads sold $224000 of goods and accepted the customer's $224000 12%, 1-year notes receivables in exchange. Assuming 12% approximates the market rate of return, whta would be the debit in this journal entry to record the sale?

a. Debit Notes Receivable for $197120.

b. Debit Accounts Receivable for $224000.

c. No journal entry until cash is collected.

d. Debit Notes Receivable for $224000.

2. Sheridan Inc. made a $27000 sale on account with the following terms: 1/10n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale?

a. Debit Accounts Receivable for $26730.

b. Debit Accounts Receivable for $27000.

c. Debit Accounts Receivable for $26730 and Sales Disccounts for $270.

d. Debit Accounts Receivables for $27000 and Sales Discounts for $270.

3. On the December 31, 2025 balance sheet of Coronado Co., the current receivables consisted of the following:

Trade accounts receivable	$82000
Allowance for uncollectible accounts	(3500)
Claim against shipper for goods lost in transit (November 2025)	4500
Selling price of unsold goods sent by Coronado on consigment at 130% of cost (not included in Coronado's ending inventory)	42000
Security deposit on lease of warehouse used for storing some inventories	46000
Total	$171000

At December 31, 2025, the correct total of Coronado's current net receivables was

a. $83000.

b. $171000.

c. $129000.

d. $125000.

4. The following accounts are from Sheridan Co.'s unadjusted trail balance at December 31, 2025:

	Debit	Credit
Accounts receivable	$728000
Allowance for uncollectible accounts	7400
Net credit sales		$2880000

Sheridan estimates that 5% of the gross accounts receivable will prove to be uncollectible. After adjustment at December 31, 2025, the allowance for uncollectible accounts should have a creit balance of

a. $47500.

b. $36400.

c. $132900.

d. $144000.

5. Marigold Company has the following account balances at year-end:

Accounts Receivable	$152000
Allowance for doubtful accounts	7600
Sales discounts	5200

Marigold should report accounts receivable at a net amount of

a. $152000.

b. $139200.

c. $146800.

d. $144400.

6. Sheridan Company has the following items at year-end:

Cash in bank	$42000
Petty cash	440
Short-term paper with maturity of 2 months	7400
Postdated checks	2300

Sheridan should report cash and cash equivalents of

a. $52140.

b. $42000.

c. $49840.

d. $42440.