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13. a. If net sales for the year are $100,000; net purchases are $50,000; the beginning inventory is $10,000; and the ending inventory is $20,000,

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13. a. If net sales for the year are $100,000; net purchases are $50,000; the beginning inventory is $10,000; and the ending inventory is $20,000, what is the gross profit? $20,000 b. $40,000 $50,000 d. $60,000 ABC Co. traded in an asset having a book value of $5,200 for a similar asset with a list price of 58,000. AB Co. pays $3,000 cash in addition to the asset traded. The cost basis of the new asset will be: c. 14. a. b. c. d. $8,000 $3,000 $8,200 $5,000 15. a. b. c. 16. To record unpaid bills of a company at the end of an accounting period, the adjustment would take the form of Debit an asset account; credit a revenue account. Debit an expense account; credit a liability account. Debit an expense account; credit an asset account. d. Debit a liability account; credit a revenue account. To record amounts owed to a company by customers at the end of an accounting period, an adjustment would take the form of: Debit an asset account; credit a revenue account, b. Debit an expense account; credit a liability account. Debit an expense account; credit an asset account. Debit a liability account; credit a revenue account To record Federal Income Tax at year-end, the adjustment would take the form of Debit an asset account; credit a revenue account. b. Debit an expense account; credit a liability account. Debit an expense account; credit an asset account. Debit a liability account; credit a revenue account. a c. d 17. a. c. d. 18 a dod To record a loan payment to the bank in the current month, the entry would take the form of Debit an asset account; credit a liability account. Debit an expense account; credit a liability account. Debit a liability account; credit an asset account. Debit a revenue account; credit an expense account

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