1. Eric Company has the following information for the year just completed: Total Sales Revenue $860,000 Sales Returns and Allowances 50,000 Sales Discounts 30,000 Ending Inventory 110,000 Gross Profit 100,000 Net Purchases 650,000 What is the amount of Cost of Goods Sold for Eric Company? a. $210,000. b. $230,000. c. $680,000. d. $780,000. 2. The Sub Shop, Inc. borrowed $10,000 on October 1, 2015, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on April 1, 2016. In connection with this note, the adjusting entry needed on December 31, 2015 would be: a. Interest Payable 600 Cash 600 b. Cash 300 Interest Payable 300 c. Interest Expense 600 Interest Payable 600 d. Interest Expense 300 Interest Payable 300 3. A building was purchased for $60,000. The asset has an expected useful life of 6 years and depreciation expense each year is $9,000 using the straight-line method. What is the residual value of the building? a. $0. b. $6,000. c. $10,000. d. $15,000