Question 4 (2 points) How many of these accounts would have a normal net credit balance? Dividends Accumulated Depreciation Cost of Goods Sold Freight in Allowance for Doubtful Accounts Unearned Sales Revenue Zero One Two Three Four Five U our Question 6 (2 points) What is the purpose of this kind of entry: Dr. Supplies XX Cr. Supplies Expense XXX To recognize Supplies Used when purchases of supplies were first recorded in the Supplies account To record the purchase of supplies during or at the end of the period To recognize supplies on hand when the supplies were first recorded in a supplies expense account To close the expense account for supplies at the end of the period Question 7 (2 points) Two partners work very hard in the sun for three years to get their Florida orange farm up and running Finally in January of year 4 they ames for a Question 7 (2 points) Two partners work very hard in the sun for three years to get their Florida orange farm up and running. Finally in January of year 4 they sell their oranges for a $100,000 profit. According to accounting theory when should this profit be considered Earned and Recognized? Earned over three years while doing the work; Recognized in January Year 4. Recognized over three years while doing the work. Earned in January Year 4. Earned and Recognized over the 3 year period of work. Earned and realized both in January Year 4. Question 22 (2 points) A company pays $24000 for a 2 year insurance policy on November 1 this year. They chose to debit Insurance Expense. When they do their once-a-year adjusting entries on December 31, what adjusting entry should they make? dr. Prepaid Insurance $22,000 Cr. Insurance Expense $22,000 Dr. Insurance Expense $2,000 Cr. Prepaid Insurance $2,000 Dr. Insurance Expense $4,000 Cr. Prepaid Insurance $4.000 Dr. Unearned Insurance $22.000 Cr. Earned Insurance $22,000