1.On September 5, we received an $11,400 payment on account. What account would we credit when we journalize this entry?

a. accounts payable

b. cash

c. accounts receivable

d. fees earned

2.On September 11, we performed $5,750 of service and were immediately paid in cash. What account would we debit when we journalize this entry?

a. service revenue

b. cash

c. accounts receivable

d. retained earnings

3.We purchased a vehicle for $45,000. It has an estimated useful life of 5 years and no residual value. What is the dollar amount we would record in our adjusting entry each month for depreciation of the vehicle if we use the straight-line method of depreciation?

a. $9,000

b. $900

c. $750

d. $500

4.Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a debit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What will be the balance in allowance for bad debts after the adjusting entry is recorded?

a. $3,000

b. $4,000

c. $5,000

d. $6,000