1. Yellow Company reported cash sales revenue of $4,000,000 and credit sales revenue of $7,500,000. It also has this information: Sales returns, $100,000, sales allowances, $35,000; bad debt expense, $200,000; and cost of goods sold expense, $8,000,000. What is the amount for net sales revenue? a. $11,365,000 b. $3,500,000 $11,500,000 d. $11,165,000 2. A company uses the percentage of sales method to estimate the bad debt expense. Credit sales revenue is $14,500,000 and cash sales revenue is $7,500,000. The company uses an estimate of 3% of credit sales revenue to estimate bad debts expense. There already is a credit balance of $200,000 in the Allowance account. The journal entry to record bad debt expense at includes: a. b. c. d. A credit to Allowance for Doubtful Accounts for $235,000 A credit to Allowance for Doubtful Accounts for $460,000 A debit to Bad Debt Expense for $435,000 A debit to Bad Debt Expense for $660,000 3. Consider inventory turnover, which is Cost of Goods Sold Expense divided by Average Inventory. Kraft Foods makes various food products. Boeing manufactures airplanes. What is the most likely pattern of the inventory turnover for these two companies? Kraft Foods (times a year Boeing (times a year) 6.4 1.6 6.7 b. c. d. 1.8 4.0 12.1 4.0 14.2 4. General Mills shows a large balance in the account. Goodwill. Which statement is true about General Mills' Goodwill? a. General Mills has been acquired by another company and turned into a subsidiary. b. The amounts General Mills paid for other companies exceeded the values of their identifiable net assets c. This account represents the good feelings that customers have for the company. d. This account would not be a result of merger and acquisitiono (M&A) activities