Koala Co. issued a $10,000, 90-day note to Kansas City Bank. The discount rate is 5%. The cash proceeds to Koala Co. are:

$9,500

$10,000

$10,125

$9,875

On January 1, Casio Company issues a $20,000, 6% installment note to First National Bank. The note payable requires Casio Company to repay the principal and interest in equal payments of $4,747 beginning December 31 for each of the next five years. What amount is applied to the note (principal) on the first payment? (Round to the nearest dollar if necessary.)

$3,547

$4,747

$4,462

$1,200

The journal entry a company uses to record the estimated accrued product warranty liability is:

debit Product Warranty Expense; credit Cash

debit Product Warranty Payable; credit Product Warranty Expense

debit Product Warranty Payable; credit Cash

debit Product Warranty Expense; credit Product Warranty Payable

(23/24/25)