5 Which of the following is an example of a deferral? (A) A customer collection received in advance (B) Estimated income tax for the year (c) interest expense incurred buy not yet paid (D) Fees earned but not yet collected (E) The sale of merchandise on credit 26 Which of the following is an example of an accrual? (A) Equipment purchased to be used in the business (B) Fees collected but not yet earned (c) interest earned but not yet received (D) Six months rent paid in advance (E) The recognition of Depreciation expense 6 A company's warehouse was destroyed by a tornado on March 15. The following information was the only information that was salvaged: Inventory, beginning $28,000 Purchases for the period $17,000 Sales for the period $55,000 Sales returns for the period $700 The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? (A) $9,705 (B) $25,995 $29,250 $44,000 $45,000 Cood