***PLEASE ANSWER ALL QUESTIONS***

24) Assume a contract for the sale of goods specifies that the seller will receive cash 20 months after delivery of a product. The seller is likely to do which of the following with respect to the time value of money over the life of the contract?

A) Recognize interest expense.

B) Recognize sales revenue for an amount that is less than the cash eventually received.

C) Recognize additional cost of goods sold.

D) Ignore the time value of money.

25) Dana sells White equipment under an arrangement whereby Dana receives cash on February 23, 2021 and delivers the equipment on August 30, 2023. When the cash is received, Dana will record a journal entry that includes:

A) Credit to deferred revenue.

B) Credit to interest revenue.

C) Debit to notes receivable.

D) Credit to sales revenue.

28) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts.

What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

A)

Cash	7,840
Accounts receivable		7,840

B)

Cash	7,840
Sales discounts	160
Accounts receivable		8,000

C)

Cash	7,840
Sales	160
Accounts receivable		8,000

D)

Cash	8,000
Sales discounts	160
Accounts receivable		8,000
Sales		160