1. On October 1, Allen purchased $39,900 of inventory items on credit with the terms 1/15 point. Freight charges were $840. Payment for the purchase was net 30, FOB shipping made on October 18. Assuming Allen uses the perpetual method of accounting for purchase discounts, what amount is recorded as inventory from this purchase? a. $39,501. b. $40,341 c. $40,740 d. $39,900. 2. Mona borrowed $800,000 on September 1, 2017 and is required to pay $850,000 on April 1, 2018. What amount is the note payable recorded at on September 1, 2017 and how much interest is recognized from September 1 to December 31, 2017? a, $800,000 and $0 b. $800,000 and $21,428 C. S850.000 and $0. d. $800,000 and $28,571. 3. Bargain Surplus made cash sales during the month of October of $375,000. The sales are subject to a 6% sales tax that was also collected, which of the following would be included in the summary journal entry to reflect the sale transactions? a. Debit Accounts Receivable for $375,000 b. Credit Sales Taxes Payable for $18,750 c. Credit Sales Revenue for $347,483. d. Credit Sales Taxes Payable for $22,500. 4. Wriglee, Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to a. patents and amortized over the legal life of the patent. b. legal fees and amortized over 5 years or less. c. expenses of the period. d. patents and amortized over the remaining useful life of the patent. Which of the following is not an intangible asset? 5. Trade name Research and development costs Franchise a. b. c