22. Which of the following statements is false regarding promissory notes? [A] They must be held by the maker until maturity. [B] They are sometimes used to extend past-due accounts. [C] They are often received upon the sale of machinery and automobiles [D] They can be resold to banks. A retail store has beginning inventory of S15,000, purchases of $110,000, sales of $100,000, and a normal gross profit of 25 percent. What is estimated inventory based on these facts and the gross profit method? [A] S100,000 23. B] $25,000 [C] $50,000 D] $75,000 Which of the following methods generally is used to determine the loss when inventory is destroyed or stolen? 24. [A] LIFO [B] FIFO [C] Gross profit method D] Retail inventory method 25. A company places, for four months, $10,000 into a money market account that is expected to pay 9 percent annual interest, compounded monthly. After one month, the entry to record interest earned will include a [A] credit to Interest Receivable for $75. B] debit to Cash for $75. [C] debit to Short-Term Investments for $75. [D] debit to Interest Income for $75. Bank of Armonk computes interest semiannually. If the interest rate is currently 6 percent, the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years? 26. [A] 20 periods at 12 percent (C] 10 periods at 3 percent [B] 20 periods at 3 percent [D] 10 periods at 6 percent