5. BOA Ltd. extracted the trial balance for the year ended 31 December 20X9. The total of the

debits exceeded the credits by $300. Which of the following could explain the imbalance?

1. Sales of $300 were omitted from the sales day book
2. Returns inward of $150 were extracted to the debit column of the trial balance
3. Discounts received of $150 were extracted to the debit column of the trial balance
4. The bank ledger account did not agree with the bank statement by a debit of $300
5. None of the above

7. Watson Company sold a delivery truck for cash of $86,800. The original cost of the truck was $336,000, and a loss of $53,200 was recognized on the sale. The accumulated depreciation at the date of sale must have been:

(A) $249,200 (B) $145,600 (C) $33,600 (D) $193,000 (E) Some other amount

8. PT Company reported the following information for 20X8 and 20X9:

20X8 20X9

Sales $100,000 $120,000

Cost of goods sold 50,000 66,000

Inventory turnover 4 6

Given these facts, which of the following statements could be true?

1. Accounts receivable increased.
2. Average inventory increased.
3. Cost of goods sold decreased.
4. Average inventory decreased.
5. None of the above