7. The company purchased equipment and these costs were incurred: $24,000 Cash price Sales tax Insurance for first year 200 Installation Total What amount should be recorded as the cost of the equipment? A. $24,000 B. S25200 C. S25600 D. $25,800 1.200 $25,800 8. Quick assets include A. Cash; cash equivalents, receivables, prepaid expenses, and inventory B. Cash; cash equivalents, receivables, and prepaid expenses C. Cash; cash equivalents, receivables, and inventory D. Cash; cash equivalents, and receivables 9. The company provides a three year warranty for its products. A customer purchases a product in 2009. In 2010, he determines it is defective and returns it. The journal entry to record the warranty expense is in A. 2009, the year of the sale B. 2010, the year that the warranty is used C. 2011, the year that the warranty expires D. any of these years are acceptable 10. When a company sells machinery that is fully depreciated for $500. The journal entry will include A. a debit to cash B. a debit to accumulated depreciation C. a credit to machinery D. all of the above 11. A fixed asset with a cost of $40,000 and accumulated depreciation of $38,000 is sold for $3,000. Which of the following statements is true? A. There is a gain on the exchange B. The book value of the asset is greater than the sale price C. Cash of $3,000 should be credited D. The asset account must be credited for $2,000 12. To write off a specific account receivable using the allowance method, the journal entry would include A. a credit to Allowance for Doubtful Accounts B. a credit to Accounts Receivable-name C. a credit to Bad Debt Expense D. a debit to Bad Debt Expense 13. A customer signs a 10%, s24 000, 90 day note on November 1 The company's year end is December 31 The adjusting entry for the company for the interest on December 31 would include? A. a debit to Interest Expense for $2,400 B. a credit to Cash for $200 C. a credit to Interest Revenue for $200 D. a debit to Interest Receivable for $400