Question 1

Price Corporation reported a $1,800 balance in accounts receivable on January 1, 2012. During the year, $12,400 of sales on account were made. During the year, Price wrote off accounts receivable of $850 as uncollectible. If the ending balance of accounts receivable is $1,000, what is the amount of cash received from customers?

Answers:	1. A. $10,600
	2. B. $10,750
	3. C. $12,350
	4. D. $14,200

Question 2

Bridges Company pays cash for all inventory purchases. Bridges reports that it had a beginning inventory of $1,250 and an ending inventory of $450. Its cost of goods sold was $2,750. Based on this information, the amount of cash p=19aid for inventory purchases was:

Answers:	A. $700
	B. $3,550
	C. $1,950
	D. $4,950

Question 3

13. The following beginning and ending balances were drawn from the records of Graves Co. ...............................beginning...........................................ending Equipment............. ......700.....................................................550 Accum. Deprec.........350.....................................................200 If Graves Co. sold equipment that had an original cost of $300 and accumulated depreciation of $150 for $125, how much did Graves pay for new equipment?

Answers:	A. $125
	B. $100
	C. $150