ABC Co has equipment that cost $60,000. The equipment is expected to have a useful life of 120 months. ABC records an adjusting entry each month for depreciation expense. Prepare the journal entry. 1. The terms of an invoice are 2/10,n/25. This means that a A) discount of 10 percent is allowed if the invoice is paid within two days B) discount of 2 percent is allowed if the invoice is paid within 10 days C) discount of 25 percent is allowed if the invoice is paid within 10 days D) discount of 2 percent is allowed if the invoice is paid after 25 days 2. If goods are sold on terms FOB shipping point, the A) seller normally pays the transportation costs B) buyer normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost 3. FOB destination refers to a situation where title to goods while in transit belongs to the A) buyer B) seller C) transport agency D) insurance agency True of False Book value and fair value are always equal. Prepaid rent is an asset