1. The entry to replenish a petty cash fund includes a credit to

a. Postage Expense.

b. Petty Cash.

c. Cash.

d. Freight Out.

2. Sheridan Company lends Marigold Company $48000 on January 1 and, accepts a 4-month, 3% promissory note in exchange. Sheridan Company prepares financial statements on January 31. What adjusting entry should be made before preparing the financial statements can be prepared?

a.

Notes Receivable-Marigold	48000
Cash		48000

b.

Interest Receivable	120
Interest Revenue		120

c.

Cash	120
Interest Revenue		120

d.

Interest Receivable	480
Interest Revenue		480

3. At December 31, 2021, Blue Spruce Ltd. has gross accounts receivable of $128000. There is a $9500 credit balance in the allowance for doubtful accounts. Management estimates bad debts to be 20% of accounts receivable. The companys bad debt expense for 2021 is

a. $9500.

b. $16100.

c. $1900.

d. $14200.

4. Sheridan Is Us Co. uses the percentage of sales approach each period to estimate uncollectible accounts. During the current year, Sheridan determined that bad debt expense should be $11190. Assuming an opening debit balance in the allowance for doubtful accounts of $990, what adjustment should be made to the allowance for doubtful accounts during the current year?

a. Credit for $12180

b. Credit for $10200

c. Credit for $11190

d. No adjustment required

5. Oriole Construction has an October 31 year end. On October 20 Oriole received a payment from Sheridan Industries in the amount of $25200 as an advance on the construction for the new head office of Sheridan. Construction was to have started October 25 but due to an early snowfall, construction did not start until November 7. Construction is scheduled to be completed December 31. Following the revenue recognition criteria, the revenue which Oriole should record in its October 31 Financial Statements is

a. $9400.

b. $5500.

c. 0.

d. none of the above.