SWhich of the follow ing is a real (permanent) account? Ans a Goodwill Circle the letter of the best answer b. Service Revenue d Both Goodwill and Accounts Receivable 9 The accounting system means Each item is recorded in a journal entry, then in a general ledger account. The dual effect of each transaction is recorded with a debit and a credit. a Each transaction is recorded with two journal entries. d. None of these answer choices are correct o When a corporation Ans athe account notes payable will be increased. b. the account interest expense will be decreased. e they will debit notes payable and interest expense. d. they will debit cash 1. A journal entry lo record a receipt of rent in advance will include a Ans a debit to Rent Revenue. b. credit to Rent Revenue. c. credit to Cash. d. credit to Unearned Revenue. 12. Which type of account is always debited during the closing process? Ans. a. Dividends b. Expense c. Revenue d. Retained earnings Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales 13. during 2017 were $2.750.000. It is estimated that 1 % of sales will be uncollectible. Tty wo he allowance acont for Ans. a $29,000. b. $27,500. c. $26,000. d. $8,000. 14. During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to S6.600. The adjusting entry for store supplies will Ans. a. increase net income by $22,200 b. increase expenses by $22,200 c. decrease supplies by $6,600. d. debit Accounts Payable for $6,600. 15. Which of the following is not a selling expense? ns. a. Advertising expense b. Office salaries expense c. Freight-out d. Factory supplies consumed