AGREE (OR) 1. Cantor Corporation purchased a building with an original cost of $10 million which it plans to use for manufacturing for 10 years. A $10 DISAGREE million expense was recorded and reported on the Income Statement in the year of purchase EXPLAIN: AGREE (OR) 2. Stanton Corporation paid for the personal travel of its chief financial officer and charged travel expense DISAGREE EXPLAIN: AGREE (OR) DISAGREE 3. At the end of its 2016 fiscal year, Dower, Inc., received an order from a customer for $60,000. The merchandise will ship early in 2017 Because the sale was made to a long-time customer and the invoice was paid in 2016, the revenue was recorded in 2016 EXPLAIN: AGREE (OR) 4. In the middle of its 2016 fiscal year, Sanguinetti Inc., paid $12,000 to its insurance company for one-year comprehensive insurance coverage. Sanguinetti recorded the entire expenditure as an expense in 2016 DISAGREE EXPLAIN: AGREE (OR) S. The Churchill Pharmaceutical Company maintains a perpetual inventory system. In order to determine the cost of goods sold and value of ending inventory, the company calculates the unit cost of inventory by taking an average of the cost of all purchases made during the accounting period DISAGREE EXPLAIN: AGREE (OR) 6. The Daily Corporation's cash balance per the monthly Bank Statement is $10,000 versus a $15,000 cash balance per the general ledger The accountant noted that the bank statement must be accurate and recorded an adjusting entry to reduce the cash balance on the general ledger DISAGREE EXPLAIN: AGREE (OR) 7. Baker Company made product sales on account during 2017 and estimates that 5% of credit sales ultimately will not pay the amounts due. As such, the accountant plans to record a Bad Debts expense only in the year the customer actually defaults (2018) DISAGREE EXPLAIN