1.The balance in the Allowance for Uncollectible Accounts is considered prior to the yearminusend

adjustment under:

A.

the direct writeminusoff

method.

B.

the agingminusofminusreceivables

method.

C.

the percentminusofminussales

method.

D.

both the percentminusofminussales

and agingminusofminusreceivables

methods.

2.Using the percentageminusofminussales

method, the estimated total uncollectible accounts are $6,622. The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $2,935. The Accounts Receivable balance is $44,420. The amount of the adjusting entry for UncollectibleminusAccounts

Expense is:

A.

$9,557.

B.

$2,935.

C.

$3,687.

D.

$6,622.

3. Lennon Company signed a 12minusmonth,

$59,000, 9% note on June 1, 2017. The amount of interest to be accrued on December 31, 2017, is: (Round your final answer to the nearest dollar.)

A.

$2,655.

B.

$3,098.

C.

$5,310.

D.

$443.

4. Sales revenue is based on the ________ of the inventory, while cost of goods sold is based on the ________ of the inventory.

A.

sale price; cost

B.

sale price; retail price

C.

cost; sale price

D.

cost; fair market value

5. Which is the CORRECT order for items to appear on the income statement?

A.

sales revenue, gross profit, cost of goods sold, operating expenses

B.

sales revenue, gross profit, net income, operating expenses

C.

sales revenue, operating expenses, gross profit, net income

D.

sales revenue, cost of goods sold, gross profit, operating expenses