Multiple Choice Take-home version 7. The balance in the Accumulated Depreciation account represents the A) cash fund to be used to replace plant assets. B) amount deducted from asset's cost to arrive at its fair market value. C) amount charged to expense since the acquisition of the plant asset. D) amount charged to expense in the current accounting period. 8. A debit balance in the Allowance for Doubtful Accounts A) is the normal balance for that account. B) indicates that actual bad debt write-offs have exceeded previous estimates for bad debts. C) indicates that actual bad debt write-offs have been less than what was estimated. D) cannot occur if the percentage of sales method of estimating bad debts is used. 9. Each of the following accounts is reported in long-term liabilities except a. Discount on Bonds Payable. b. Bonds Payable. c. Salaries Payable. d. Mortgage Bonds Payable. 10. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6 %, 9-month note. What entry will Sadowski Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? a. Notes Payable.... Cash... 530,000 530,000 b. Interest Expense 22,500 Notes Payable...... Cash.... 500,000 522,500 c. Interest Payable...... 22,500 Notes Payable........ 500,000 Cash............ 522,500 d. Interest Expense.... 30,000 Notes Payable......... 500,000 Cash...... 530,000