1.The accounting records of Seattle Outlet include the following for January: A physical count determined the cost of inventory on hand at January 31 to be $42,000. If gross profit amounts to 25% of net sales, compute the beginning inventory at January 1.

Select one:

a. $10,000

b. $26,000

c. $8,000

d. $24,000

e. $6,000

2.

On 12/31/12, as part of the year-end adjusting journal entries, the Strickland Company accrues three day's wages of $600 ($200 per day). The proper 12/31/12 closing entries are made. No reversing entry is made on 1/1/13. Strickland pays the weekly payroll of $1,000 on 1/2/13. The balance in the Wage Expense account after the 1/2/13 journal entry will be:

Select one:

a. $0

b. $400

c. $600

d. $1,000

e. $1,200

3.

The accounting records of Seattle Outlet include the following for January: A physical count determined the cost of inventory on hand at January 31 to be $42,000. If gross profit amounts to 25% of net sales, compute the beginning inventory at January 1.

Select one:

a. $10,000

b. $26,000

c. $8,000

d. $24,000

e. $6,000

Sales Purchases Sales Discounts Freight - In Purchase Returns and Allowances $326,000 260,000 6,000 14,000 2,000 Sales Purchases Sales Discounts Freight - In Purchase Returns and Allowances $326,000 260,000 6,000 14,000 2,000