Done Expert Q&A 27) A company has advance subscription sales totaling $45,000 for the upcoming year when 27) four quarterly journals will mailed to customers. When the company mails the first quarterly journal to customers, it should record: A) Debit Uncarned Revenue $11,250, credit Sales $11,250 B) Debit Unearmed Revenue $45,000, credit Cash $45,000 C) Debit Cash $11,250, credit Sales $11,250 D) Debit Prepaid Subscriptions $33,750, credit Uncarned Revenue $33,750 E) Debit Prepaid Subscriptions $11,250, credit Sales $11,250 28) An estimated liability 28) A) Is not recorded until the amount is known for certain B) Is an unknown liability of a certain amount C) Is a known obligation of an uncertain amount that can be reasonably estimated D) Can be the result of a lawsuit. E) Is a liability that may occur if a future event occurs 29) Furniture World is required by law to collect and remit sales taxes to the state. If 29) Furniture world has $7 00 ofcash sales journal entry to reoord the cash sales? are subject to a 6% sales tax, what is the A) Debit Cash $78,000, credit Sales $78,000, and reoord the taxes when paid. B) Debit Cash $82,680, credit Sales $78,000, credit Sales Taxes Payable $4,680 C) Debit Cash $78,000, crodit Sales $73,320 credit Sales Taxes Payable $4,680. D) Debit Accounts Receivable $82,680, credit Sales $78,000 credit Sales Taxes Payable $4,680. E) Debit Sales Taxes Payable $4,680, debit Cash $73,220, credit Sales $78,000 JAcompany factored $45,000ofitsacounts receivable and was charged a 4% fee. The journal entry to record this transaction would include a: toning N)- A) Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and credit to Accounts Receivable of $46,800. B) Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000. C) Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800. D) Debit to Cash of $45,000 and a crodit to Notes Payable of $45,000 E) Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a crodit to Accounts Receivable of $45,000