For problems 24. and 25., refer to the following information related to Fitz Company. On June 1, Fitz installed a $500,000 sound system for International Arena. Fitz agreed to accept a $500,000 six-month, 10% note due on December 1. Fitz prepares financial statements at the end of every calendar year. Fitz's journal entry to record the collection of the note plus accrued interest on December 1, will include a 24. A. credit Interest Revenue for $25,000 3. debit Note Receivable for $500,000 credit Note Receivable for $500,000 b. credit Interest Revenue for $50,000 Fitz's journal entry to record the collection of the note plus accrued interest on December 1, will include a 25. A. credit Interest Revenue for $25,000 B. debit Note Receivable for $500,000 1. credit Note Receivable for $500,000 b. credit Interest Revenue for $50,000 Questions 26 - 30 rela to CSO 3.3 Objective 3: Prepare analyses and journal entries using various inventory cost-flow assumptions. Smith-Miller Enterprises has inventory of $657,000 in its stores as of December 31. It also has two shipments in transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $128,000 was sold f.o.b. destination and the second shipment of $76,000 was sold f.o.b. shipping point. What amount of inventory should Smith-Miller report on its balance sheet as of December 317 26. 733,000 861,000 785,000 657,000 Christian Company uses the gross method of recording purchase discounts on inventory and the perpetual inventory system. When Christian Company makes payment for the inventory within the discount period, the bookkeeper will 27. Dr. Inventory Cr. Cash B. Dr. Accounts Payable Dr. Purchases Dr. Accounts Payable Cr. Inventory Cr. Cash Dr. Accounts Payable Cr. Inventory