Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,300 for $6,600 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we credit to record the cost of goods sold for this transaction?

Group of answer choices

a) sales revenue, $6,600

b) accounts receivable, $6,600

c) cost of goods sold, $3,300

d) merchandise inventory, $3,300

Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1120 units at $70 per unitPurchase on February 14100 units at $85 per unitSale on August 21150 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

Group of answer choices

a) $4,900

b) $5,950

c) $10,950

d) $12,000

Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a debit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What will be the balance in allowance for bad debts after the adjusting entry is recorded?

Group of answer choices

a) $3,000

b) $4,000

c) $5,000

d) $6,000

Our company uses the percentage of receivables method to estimate bad debt expense for the year. We had the following account balances on our unadjusted trial balance at the end of the year (December 31): accounts receivable, debit balance of $150,000; allowance for bad debts, debit balance of $1,000. We estimate that 3.5% of accounts receivable at the end of the year are uncollectible. What will be the balance in allowance for bad debts after the adjusting entry is recorded?

Group of answer choices

a) $4,000

b) $4,250

c) $5,250

d) $6,250

On January 1, our company purchased a truck for $80,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $10,000. What is the depreciation expense for the third year of use if we use the straight-line method?

Group of answer choices

a) $17,500

b) $20,000

c) $35,000

d) $52,500