On March 17, Grady Company agrees to accept a 60-day, 10%, $6,100 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Alert Company?

	Debit Sales $6,100; credit Notes Payable $6,100.
	Debit Cash $6,100; credit Notes Payable $6,100.
	Debit Notes Payable $6,100; credit Accounts Payable $6,100.
	Debit Accounts Receivable $6,100; credit Notes Payable $6,100.
	Debit Accounts Payable $6,100; credit Notes Payable $6,100.
Marble Company purchased a machine costing $135,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,500. The machine requires special mounting and wiring connections costing $11,500. When installing the machine, $2,800 in damages occurred. Materials costing $3,000 are used in testing and adjusting the machine to produce a satisfactory product. Compute the cost recorded for this machine assuming Marble paid within the discount period.

	$148,850.
	$154,450.
	$148,150.
	$155,800.
	$151,650.

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Arena Company provides health insurance to its employees that costs $15,600 per month. In addition, the company contributes 5% of the employees' $156,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:

	Credit to Employee Benefits Expense $23,400.
	Debit to Medical Insurance Payable $15,600.
	Credit to Employee Benefits Expense $15,600.
	Debit to Employee Retirement Program Payable $7,800.
	Debit to Employee Benefits Expense $23,400.

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The following information is available on a depreciable asset owned by First Bank & Trust:

Purchase date	October 1, Year 1
Purchase price	$115,600
Salvage value	$11,200
Useful life	12 years
Depreciation method	straight-line

The asset's book value is $98,200 on October 1, Year 3. On that date, management determines that the asset's salvage value should be $6,200 rather than the original estimate of $11,200. Based on this information, the amount of depreciation expense the company should recognize during the last three months of Year 3 would be:

	$2,233.04
	$2,455.00
	$2,300.00
	$2,020.00
	$2,590.18