7. Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $21,100. What is the amount of sales discount allowable?

a.$149

b.$215

c.$205

d.$422

8.

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $751,266 and Allowance for Doubtful Accounts has a balance of $21,924. What is the net realizable value of the accounts receivable?

a.$773,190

b.$729,342

c.$21,924

d.$751,266

9.The charter of a corporation provides for the issuance of 150,000 shares of common stock. Assume that 68,000 shares were originally issued and 13,500 were subsequently reacquired. What is the number of shares outstanding?

a.54,500

b.150,000

c.68,000

d.13,500

10.

DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $2,230 for office equipment and $6,140 for production equipment. Prepare the two entries to record the depreciation. If an amount box does not require an entry, leave it blank.

Dec. 31
Dec. 31