Norfolk Sporting Goods purchases merchandise with a catalog list price of $15,900. The retailer receives a 42% trade discount and credit terms of 2/10, n/30. What amount should Norfolk debit to the merchandise inventory account (Round your answer to the nearest dollar)?

a.$9,038

b.$184

c.$9,222

d.$15,900

Merchandise with a sales price of $4,400 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

a.debit to Accounts Receivable for $4,292

b.credit to Sales for $4,312

c.debit to Cash for $4,400

d.debit to Sales Discounts for $88

Using the following information, what is the amount of income from operations?

Purchases	$ 33,723		Selling expenses	$ 886
Merchandise inventory, September 1	7,183		Merchandise inventory, September 30	9,441
Administrative expenses	1,060		Sales	53,822
Rent revenue	920		Interest expense	928

a.$20,411

b.$29,442

c.$21,331

d.$22,259

Cumberland Co. sells $905 of inventory to Hancock Co. for cash. Cumberland paid $669 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?

a.debit Cash, $905; credit Merchandise Inventory, $669

b.debit Accounts Receivable, $905; credit Sales, $905; and debit Cost of Merchandise Sold, $669; credit Merchandise Inventory, $669

c.debit Cash, $669; credit Sales, $669

d.debit Cash, $905; credit Sales, $905; and debit Cost of Merchandise Sold, $669; credit Merchandise Inventory, $669

The following units of an inventory item were available for sale during the year:

Beginning inventory	9 units at $51
First purchase	19 units at $50
Second purchase	25 units at $59
Third purchase	15 units at $57

The firm uses the periodic inventory system. During the year, 53 units of the item were sold.

The value of ending inventory using LIFO is

a.$459

b.$989

c.$759

d.$1,218

Minor Company had checks outstanding totaling $5,099 on its April bank reconciliation. In May, Minor Company issued checks totaling $41,174. The May bank statement shows that $25,504 in checks cleared the bank in May. A check of $737 from one of Minor Company's customers was also returned marked "NSF." The amount of outstanding checks on Minor Company's May bank reconciliation should be

a.$20,405

b.$66,678

c.$20,032

d.$20,769

At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $777. During the year, previously written off accounts of $141 are reinstated and accounts totaling $754 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be

a.$141

b.$777

c.$754

d.$164

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $10,400 face value and 5% interest. On October 30, the journal entry to record the collection of the note, assuming a 360-day year, should include a

a.debit to Interest Receivable for $109

b.credit to Interest Revenue for $130

c.credit to Notes Receivable for $167

d.debit to Notes Receivable for $147

A 60-day, 11% note for $22,800, dated May 1, is received from a customer on account. The maturity value of the note, assuming a 360-day year, is

a.$418

b.$25,308

c.$22,800

d.$23,218

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $258,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,400 before adjustment?

a.

Bad Debt Expense	$5,340
Allowance for Doubtful Accounts		$5,340

b.

Bad Debt Expense	$6,340
Allowance for Doubtful Accounts		$6,340

c.

Bad Debt Expense	$4,840
Allowance for Doubtful Accounts		$4,840

d.

Bad Debt Expense	$4,340
Allowance for Doubtful Accounts		$4,340