10. La More Company had the folowing transactions during 2016. Sales of $4.500 on account Collected $2,000 for services to be performed in 2017 Paid $1.375 cash in salaries for 2016 Purchased airline tickets for s250 in December for a trip to take place in 2017 What is La More's 2016 net income using accrual accounting? a, $3,375 lb. $5,375 c, $5,125 d. $3,125 11. Raxon Company borrowed s30,000 from the bank a 6%, note on September 1. Principal and interest are payable to the bank on December company prepares monthly financial statements, the adjusting entry the company should make for interest on that September 30, would be: a. debit Interest Expense $1.800 credit interest Payable $1800. b. Interest $150: credit Intorest Payable, $150. c, debit Note Payable, $1.800, credit Cash, $1,800. 12. Under the accrual basis of accounting: must be received before revenue is recognized. b. income is calculated by matching outnows against cash infows c. events that change a company's financial statements are recognized in the period d. they occur rather than in the period in which cash paid or received. before the ledger accounts must be adjusted to reflect a cash basis of accounting financial statements are prepared under generally accepted accounting principles. 13. The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit Accounts Payable Purchase Returns and Allowances, c. Sales Revenue. d. Merchandise Inventory. 14. The collection of an $1.500 account within the 2 percent discount period will result in a a. debit to Sales Discounts for $30 b. debit to Accounts Receivable for $1,470. c. credit to Cash for $1.470. d. credit to Accounts Receivable for $1,470