Question 11 25 po Merchandise is sold for cash. The selling price of the merchandise is $4.000 and the sale is subject to a state sales tax. The journal entry to record the sale would include A credit to Cash for $4,000. A debit to accounts receivable for $4,000 O A credit to Sales for $4,200. A credit to Sales Tax Payable for $200. Question 12 Unearned Fees appear on the balance sheet in the current assets section balance sheet as a current liability balance sheet in the stockholders' equity section income statement as revenue Question 130 Question 13 25 points Merchandise is sold for cash. The selling price of the merchandise is $6.000 and the sale is subject to a state sales taxt. The journal entry to record the sale would include a credit to Cash for $6,000 Sales for $6,420 Sales Tax Payable for $420 Sales for $5,580 Question 14 A debit balance in the Allowance for Doubtful Accounts is the normal balance for that account indicates that actual bad debt write-offs have been less than what was estimated cannot occur if the percentage of receivables method of estimating bad debts is used indicates that actual bad debt write-offs have exceeded previous provisions for bad debts Question 15 When the company uses the allowance method to estimate uncollectible accounts, Bad Debts Expense is debited when a customer's account becomes past due an account becomes bad and is written off a customer returns merchandise when sales are made Question 16 The book value of depreciable property and equipment reported on the balance sheet represents its market value on that date. True False Question 17 Accumulated Depreciation is used to show the amount of cost expiration of intangibles. is the same as depreciation expense. is a contra asset account. is used to show the amount of cost expiration of natural resources, Question 18 When a company provides services to its customers, revenue should be recognized on the income statement when payment is received. o the service is provided to the customer the customer places an order. the customer prepays for the service. A Moving to another question will save this response. Question 19 An intangible asset is amortized over the useful life of the asset. True False Question 20 Calculate the gross profit for Jefferson Company based on the following: Sales = $764,000 Selling Expenses = $42,500 Cost of Merchandise Sold = $538,000 $495,500 $183,500 $721,500 $226,000