Pearls, Inc. purchased machinery on February 1 for $25,000 in cash and a $75,000 note. The 1 year note has an interest rate of 5%. O Debit machinery $100,000, credit cash 25,000 and note payable 75,000 O Debit machinery 100,000 and interest expense 5, credit cash 25,005 and note payable 75,000 No entry required O Debit machinery 75,000, credit note payable 75,000 O Debit accounts payable 100,000, credit machinery 75,000 and cash 25,000 On March 17, Pearls, Inc. purchased inventory for $7,000 on account, terms 1/10 net 30. O Debit inventory, credit A/P O Debit accounts payable 7,000, credit cash 6,930 and inventory 70 None of the provided answers are correct O No entry required Debit A/P, credit inventory On March 17, Pearls, Inc. purchased inventory for $7,000 on account, terms 1/10 net 30. What is the entry when Pearls, Inc. paid the supplier for the purchase of inventory above on March 25. O Debit cash, credit A/P None of the provided answers are correct Debit inventory, credit cash O Debit accounts payable 7,000, credit cash 6,930 and inventory 70 O Debit A/P, credit cash On July 31, Pearls, Inc. borrowed $13,000 in the form of a loan from the bank. The loan has an interest rate of 8% with principal and interest due to be repaid in three years. Debit cash 13,000, credit note payable 13,000 O Debit cash 11,960 and interest expense 1,040, credit note payable 13,000 O No entry required O Debit interest expense 1,040, credit cash 1,040 Debit Note payable 11,960 and interest expense 1,040, credit cash 13,000 On August 10, Pearls wrote off $1,150 it was owed on account. O Debit sales revenue, credit bad debt expense O Debit write off, credit A/R Debit bad debt expense, credit A/R O Debit allowance for uncollectable accounts, credit A/R O Debit bad debt expense, credit allowance for uncollectable accounts On August 12, Pearls sold merchandise which cost $10,000 for $15,000 O Debit cash 15,000, credit merchndise cost 10,000 and profit 5,000 O Debit COGS 10,000, credit sales revenue 15,000 O Debit cash 15,000 and COGS 10,000, credit sales revenue 15,000 and inventory 10,000 Debit sales revenue 15,000, credit inventory 10,000 O None of the provided answers are correct On December 22, Pearls bid on contracts for $30,000 of services to be performed in January. O Debit deferred revenue, credit A/R O No entry required O Debit cash, credit service revenue O Debit contract expense, credit cash O Debit A/R, credit service revenue As of December 31, there were $40,000 of employees' salaries that had not been paid for two weeks of work in December. What is the end of month adjusting entry? Debit salaries expense, credit cash O Debit salaries expense, credit salaries payable O Debit salaries payable, credit cash Debit service revenue and salaries expense, credit salaries payable O No entry required
