20. In a recent year Dillon Corporation had net income of $130,000, interest expense of $20,000, and tax expense of $30,000. What was Dillon Corporations times interest earned ratio for the year? 12. Janway sells softball equipment. On November 14, they shipped $1,000 worth of softball uniforms to Chris Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $600 worth of custom printed bats to be produced in December. On November 30, Chris Middle School returned $100 of defective merchandise. Janway has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the Balance Sheet as of November 30? A.) $1,600 B.) $1,500 C.) $1,000 D.) $900 A.) 6.50 B.) 7.50 C.) 8.00 D.) 9.00 21. A company has an average inventory on hand of $60,000 and its average days in inventory is 29.2 days. What is the cost of goods sold? A.) $750,000 B.) $1,752,000 C.) $1,680,000 D.) $876,000 22. On April 5 Sallys Boutique accepted a VISA card for a $400 purchase. VISA charges a 2% service fee. The entry to record this transaction would include a A.) credit to Cash of $392. B.) debit to Cash of $400. C.) debit to Service Charge Expense of $8. D.) credit to Service Charge Expense of $8. 23. The following selected amounts are available for Sanders Company. Retained earnings (beginning) $1,000 Net loss 100 Cash dividends declared 100 Stock dividends declared 50 What is its ending retained earnings balance? A.) $850 B.) $900 C.) $750 D.) $800 10. The adjusted trial balance for Lifesaver Corp. at the end of the current year, 2007, contained the following accounts. 5-year Bonds Payable 8% $1,000,000 Bond Interest Payable 50,000 Premium on Bonds Payable 100,000 Notes Payable (3 mo.) 40,000 Notes Payable (5 yr.) 165,000 Mortgage Payable ($15,000 due currently) 200,000 Salaries Payable 18,000 Taxes Payable (due 3/15 of next yr) 25,000 The total long-term liabilities reported on the balance sheet are A.) $1,365,000 B.) $1,350,000 C.) $1,465,000 D.) $1,450,000