please answer all questions

QUESTION 2 A company sells a machine for $10,000 cash. The cost of the machine was $18,000 and the balance of its Accumulated Depreciation account is $9.000 Was this machine sold at again or a loss? O a. Gain $8,000 O b. Loss $8,000 Oc. Gain $1,000 Od. Loss $1,000 QUESTION 3 A company uses the percent of sales method to estimate bad debts expense. A company expects for 5% of total sales to go unpaid. The balance in the sales account and the allowance for doubtful accounts is equal to $100,000 and $3.000 (credit), respectively. How much in bad debt expense should be recognized as of the end of the year? a. $2,000 b. $5,000 O $3,000 d. $8,000 QUESTION 4 ABC Co. purchases merchandise inventory for $500 under credit terms 2/10, n/30. Which of the following would be debited in the journal entry to record this purchase? Oa. Merchandise Inventory $490 b. Merchandise Inventory $500 Oc. Accounts Payable $490 Od. Accounts Payable $500 QUESTION 5 hich of the following would be credited in the journal entry to record this purchase? ABC Co. purchases merchandise inventory for $500 under credit terms 2/10, n/30. a. Merchandise Inventory $500 b. Accounts Payable $500 OC. Merchandise Inventory $490 Od. Accounts Payable $490 to come off onserra QUESTION 6 ABC Co. repairs a 3 year old machine at a cost of $3,000. This repair neither improves the capabilities of the machine nor extends its useful life. The cost of this repair should be debited to which account? O a Machine O b. Repairs Expense OC. Cash Od. Accounts Payable QUESTION 7 ABC Co.'s supplies account has a debit balance of $1,000. A physical inspection of the company's supplies indicates that ABC Co. actually has $400 worth of supplies in the adjusting entry to the supplies account, the supplies expense account would be debited for how much? a. $400 b. $1,000 Oc$600 Od. $1,400 QUESTION 8 ABC Inc. has been sued by Blue City for environmental damages. ABC Inc.'s attomeys believe that it is likely that ABC Inc. will lose this lawsuit and be forced to pay $10,000. What should ABC Inc.do? O a. Record the contingent liability on the balance sheet Ob. Disclose the contingent liability in the footnotes Oc Record the contingent liability on the income statement O d. None of the above QUESTION 9 ABC Inc. issues 10,000 shares of $1 par common stock in return for land with a market value of $50,000. The journal entry to record this issuance would be Oa. DR: Cash $50.000; CR: Common Stock $50,000 Ob.DR: Land $50,000; CR: Common Stock $50,000 OC. DR: Cash $50,000; CR: Common Stock $10,000, CR: PIC-Common Stock $40,000 Od. DR: Land $50,000, CR: Common Stock $10,000, CR: PIC-Common Stock $40,000 QUESTION 10 Assuming a company uses the allowance method, the journal entry to write off an uncollectible accounts receivable includes a debit to: a. Accounts Receivable b. Cash c. Bad Debt Expense d. Allowance for Doubtful Accounts QUESTION 11 Assuming a company uses the direct write-off method, the journal entry to write off an uncollectible accounts receivable includes a debit to: O a. Accounts Receivable b. Cash c. Bad Debt Expense Od. Allowance for Doubtful Accounts QUESTION 12 Book Value is: O a. Cost minus Cash Received O b. Salvage Value minus Accumulated Depreciation O c. Cost minus Accumulated Depreciation O d. Cost minus Salvage Value QUESTION 13 Deposits in transit as of the end of the month are: O a. Added to the cash balance per the Book O b. Subtracted from the cash balance per the Book c. Added to the cash balance per the Bank d. Subtracted from the cash balance per the Bank QUESTION 14 During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is: O a. FIFO method O b.LIFO method c. Specific identification method d. Weighted-average method. QUESTION 15 Generally accepted accounting principles require that the inventory of a company be reported at: O a. Historical cost O b. Lower of cost or market c. Market value O d. Retail value QUESTION 16 If contract rate of a bond is 12% and the current market rate if 8%, this bond is sold at: O a. A premium. O b. A discount. c. Par. O d. None of the above