An architecture firm earned $2,000 for architecture services provided with the fee to the paid in the future. No entry was made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause; A) revenues to be understated B) revenues to be overstated C) liabilities to be understated. D) net income to be overstated. Closing entries: A) reduce the number of permanent accounts B) Summarize the activity in every account. C) are prepared before the financial statements. D) Cause the revenue and expense accounts to have zero balances. When an account is written off using the allowance method, accounts receivable A) decreases and the allowance account decreases. B) is unchanged and the allowance account increase C) increases and the allowance account increases. D) decreases and the allowance account increases. The interest on a $10,000, 6%, 60-day note receivable is A) $680 B) $300 C) $100 D) $200 In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure? A)FIFO method B)LIFO method C) Average cost method D)Need more information to