8. On December 12, Howards Hardware sells materials for $7,800 to John Smith. Smith signs a 60-day promissory note at 7% annual interest. On December 12, the journal entry made by Howards Hardware for the sale to John Smith will include

a credit to Sales Revenue for $7,800.

a debit to Accounts Receivable for $7,800.

a credit to Interest Revenue for $91.

a debit Interest Receivable for $91.

9. At year-end, Urus Company has Cash of $15,500, Accounts Receivable of $52,300, Inventory of $28,700, and Prepaid Expenses totaling $7,200. Total Current Liabilities are $48,800 and Total Assets are $195,500. What is the quick ratio (rounded)?

0.32

0.95

1.39

1.98

10. Accounts receivable turnover for ABC Company was 8.7 for this year and 9.8 for last year. For XYZ, Inc., accounts receivable turnover was 9.4 for this year and 8.9 for last year. These results indicate that

ABC Company has better turnover than XYZ, Inc. for both years.

XYZ, Inc. is collecting its receivables more quickly this year than last year.

Turnover for ABC Company is improving.

Credit policies for XYZ, Inc. are too strict for its customer base.