1. If a 10%, one-year, $1,00 note is dishonored by the maker, the payee might record a journal entry that includes; A. a credit to interest income of $100.

B. a debit to accounts receivable of $1,100.

C. a credit to Notes Receivable for $1,000.

D. A, B, and C

E. None of these.

2. Beginning inventory cost $60,000 and retailed for $100,000. Purchases for the period were $240,000 and were marked to retail at $400,000. Sales for the period were $300,000. Using the retail method, the estimated gross profit for the period is:

a. $240,000.

b. $300,000.

c. $160,000.

d. $120,000.

e. none of these