Cross-Country Bikes is a retail bike shop that sells all types of recreational and high-end bicycles. Their accounting year runs from January 1 to December 31 and they use the accrual basis of accounting.

Q1)

Q2)

Cross-Country receives and pays an electric bill on November 5 of $450 for electricity used in October. How much expense should Cross-Country recognize in each of the following months? September October November A $0 $0 $0 B $0 $450 $0 C $0 $0 $450 D $0 $225 $225 Cross-Country pays a $5,000 down payment in October for specialized machinery used in its manufacturing process. The machines are delivered in December, at which time Cross-Country pays the balance of the purchase price of $8,000. How much expense should Cross-Country recognize in each of the following months? September October November A $0 $0 $0 B $0 $5,000 $0 C $0 $13,000 $0 D $0 $5,000 $8,000