An item of merchandise was sold with an invoice price of $400 and credit terms of 2/10, n/30. The entry to record the sale would include a credit to Sales of

Select one:

a. $400

b. $396

c. $408

d. $392

The final closing entry to be journalized is typically the entry that closes the

Select one:

a. revenue accounts.

b. owner's withdrawals account.

c. owner's capital account.

d. expense accounts.

The buyer received an invoice from the seller for merchandise with a list price of $400 and credit terms of 2/10, n/60. The number 30 in the credit terms is the

Select one:

a. credit period

b. cash discount (discount rate) allowed for early payment of the invoice

c. discount period

d. trade discount

A Company purchased a delivery truck on January 1, 2015. The cost of the truck is SR 55,000. The company estimated that the truck will have a scrap value of SR 24,000 It has a useful life of 5 years. The book value in the second year will be:

Select one:

a. 31000

b. 18600

c. 24800

d. not enough information to decide.

On March 1, 2016, Dammam Real Estate Company acquired a land by paying $66,000 in cash. An old warehouse on the property was demolished at a cost of $6,825; the scrap materials were sold for $5,700. Additional expenditures before construction began included $5,575 attorney's fee for work concerning the land purchases, $5,950 real estate broker's fee.

Select one:

a. $66,000

b. $90,050

c. $41,950

d. $78,650