1.

The following information is available for October for Jordan Company: A fire destroyed most of Jordans October 31 inventory warehouse, leaving undamaged inventory with a cost of $3,000. Using the gross profit method, the estimated ending inventory destroyed by fire is:

Select one:

a. $29,286

b. $12,000

c. $51,000

d. $4,286

e. $15,00

2.

The following information for the month of April is available from the records of Ireland Department Store: Estimate the cost of the April 30 inventory using the Conventional Retail Inventory Method:

Select one:

a. $9,380

b. $11,183

c. $10,058

d. $9,319

e. $13,668

3.

Jefferson Services Company records the collection of $325 cash for previously accrued revenue and then makes an accrual of $500 for another revenue. The impact of these two entries on total net income and working capital is an increase of:

Select one:

a. Net Income $325, Working Capital $825

b. Net Income $825, Working Capital $325

c. Net Income $325, Working Capital $500

d. Net Income $500, Working Capital $825

e. Net Income $500, Working Capital $500

4.

The accounts to be debited in the closing entries at year-end include:

Select one:

a. Accumulated Depreciation, Purchases, Freight-In

b. Purchase Discounts, Sales, Purchase Returns

c. Purchase Returns, Sales Discounts, Interest Expense

d. Prepaid Expense, Depreciation Expense, Freight-Out

e. Depreciation Expense, Purchases, Sales Returns

5.

The CQ Company uses the periodic method for inventory. All sales and purchases are on credit. How does CQ account for a return of merchandise to a vendor?

Select one:

a. Debit Purchase Return, Credit Accounts Payable

b. Debit Accounts Payable, Credit Purchases Receivable

c. Debit Cost of Goods Sold, Credit Inventory

d. Debit Accounts Payable, Credit Inventory

e. Debit Accounts Payable, Credit Purchase Return