b

If Hostell Company has net sales of $500,000 and a gross profit rate of 40%, cost of goods sold is: a $312,500 b. $200,000 C. $300,000 d. $357,143 e. $800,000 According to generally accepted accounting principles, goodwill is: a. Recorded when favorable factors combine to create goodwill b. Recorded when a company has superior earning power c. Recorded when a payment to purchase a business is less than its tangible net assets d. Recorded as a contra-asset e. Not depreciated or amortized The account Allowance for Doubtful Accounts is what type of account and appears on which financial statement? TYPE Debit FINANCIAL STATEMENT Income Statement b TYPE Debit TYPE Credit FINANCIAL STATEMENT Balance Sheet FINANCIAL STATEMENT Income Statement c d. TYPE FINANCIAL STATEMENT Balance Sheet Credit