1.....The following information is available for October for Jordan Company:

A fire destroyed most of Jordan's October 31 inventory, leaving undamaged inventory with a cost of $3,000. Using the gross profit method, the estimated ending inventory destroyed by fire is:

Select one:

a. $47,000

b. $22,000

c. $97,000

d. $20,000

e. $25,000

2......

The following information for the month of April is available from the records of Ireland Department Store: Estimate the cost value of the April 30 inventory using the Conventional Retail Inventory Method:

Select one:

a. $11,460

b. $9,636

c. $11,961

d. $8,990

e. $19,100

3........

Jefferson Services Company records the payment of $500 cash for previously accrued expenses and then makes an accrual of $825 for a revenue. What is the impact of these two entries?

Select one:

a. Net Income increased $825 and Working Capital increased $825

b. Net Income increased $825 and Working Capital increased $325

c. Net Income increased $325 and Working Capital decreased $500

d. Net Income decreased $500 and Working Capital increased $325.

e. Net Income decreased $500 and Working Capital decreased $500.

4......

The accounts to be credited in the closing entries at year-end include:

Select one:

a. Depreciation Expense, Purchases, Freight-In

b. Freight-Out, Purchase Returns, Purchases

c. Purchase Returns, Purchases, Interest Revenue

d. Prepaid Expense, Depreciation Expense, Freight-Out

e. Depreciation Expense, Purchase Discounts, Sales Returns

5........

The CQ Company uses the perpetual method for inventory. All sales and purchases are on credit. How does CQ account for a return of merchandise to a vendor?

Select one:

a. Debit Purchase Returns, Credit Accounts Payable

b. Debit Accounts Payable, Credit Purchase Returns

c. Debit Cost of Goods Sold, Credit Inventory

d. Debit Inventory, Credit Accounts Payable

e. Debit Accounts Payable, Credit Inventory