1

Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Company. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)

Multiple Choice

Debit Cash $25,437.50; credit Interest Revenue $437.50; credit Notes Receivable $25,000.

Debit Cash for $25,000; credit Notes Receivable $25,000.

Debit Cash $25,437.50; credit Notes Receivable for $25,437.50.

Debit Cash $26,750; credit Interest Revenue $1,750, credit Notes Receivable $25,000.

Debit Notes Payable $25,000; Debit Interest Expense $1,750; credit Cash $26,750.

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2

A company had the following purchases and sales during the month of November:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
November 1	Beginning inventory	5 units @ $20 = $100
November 2	Purchase	10 units @ $22 = $220
November 6	Purchase	6 units @ $25 = $150
November 8	Sales		8 units @ $55

Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

Multiple Choice

$296

$276

$280

$304

$288