I. Accrued expenses are ordinarily reported on the balance sheet as A. assets B. liabilities C. fixed assets D prepaid expenses 2 When Harmony Inc. performs $1,000 of services on account for a customer, Harmony will record a journal entry with a debit t: A. Service Revenue and a credit to Unearned Revenue. B. Cash and a credit to Accounts Receivable. C. Accounts Receivable and a credit to Service Revenue. D. Cash and a credit to Accounts Payable. 3. Which of the following items is reported on the income statement as an expense? A. This month's cash sales B. This month's utility bill C The purchase of land D. The purchase of supplies 4. A contra-account: A. reduce the asset to its fair value B. offsets, or reduces, another account. C. always appears in the same column of the trial balance as the account to which it relates D. increases the original value of the account to which it relates. 5. The balance sheet should be prepared A. before the income statement and the retained earnings statement B. before the income statement and after the retained earnings statement C. after the income statement and the retained earnings statement D. after the income statement and before the retained earnings statement 6. A company uses the percentage of sales method to account for bad debt expense. As of year-end the company reported the following unadjusted balances: S258,000 800 950,000 Allowance for doubtful accounts (debit balance) Based on past experience the company estimates that approximately 2% of sales are uncollectible. What is the correct adjusting journal entry the company should make at year-end to estimate bad debt expense? 5,160 A. 5,160 5,160 5,160 19,000 C. Accounts receivable 19,000 19,000 Bad debt expense... D. Allowance for doubtful 19,000 7. A company discarded a display case that it had originally purchased for $8,000. The case had S7,200 worth of accumulated depreciation. The company should recognize a(n): A. S0 gain or loss B. S800 gain C. $800 loss D. $7,200 loss 8. The entry to record the return of merchandise from a customer would include a A. debit to Customer Refunds Payable. B. debit to Estimated Returns Inventory C. credit to Sales. D. debit to Sales