QUESTION 1 A bond is repaid at maturity. The journal entry to record this repayment includes a debit to: Oa. Premium on Bonds Payable Ob. Bond Interest Expense Oc. Cash Od. Bonds Payable 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 a gain o a loss? Oa. Gain $8,000 Ob. 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? Oa. $2,000 Ob. $5,000 Oc $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 Ob. Merchandise Inventory $500 Oc. Accounts Payable $490 Od. Accounts Payable $500