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1/ On November 10 of the current year, Flores Mills sold carpet to a customer for $7,600 with credit terms 1/10, n/30. Flores uses the gross method of accounting for cash discounts.

What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

Multiple Choice

• Cash	7,524
  Sales discounts	76
  Accounts receivable		7,600

• Cash	7,524
  Sales	76
  Accounts receivable		7,600

• Cash	7,600
  Sales discounts	76
  Accounts receivable		7,600
  Sales		76

• Cash	7,524
  Accounts receivable		7,524

2/ Oswego Clay Pipe Company sold $46,700 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego uses the gross method of accounting for cash discounts.

What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?

Multiple Choice

• Cash	46,700
  Sales discounts	1,868
  Accounts receivable		46,700
  Sales discounts forfeited		1,868

• Cash	46,700
  Accounts receivable		44,832
  Sales		1,868

• Cash	44,832
  Sales	1,868
  Accounts receivable		46,700

• Cash	44,832
  Sales discounts	1,868
  Accounts receivable		46,700

3/ Ireland Corporation obtained a $48,000 note receivable from a customer on June 30, 2018. The note, along with interest at 5%, is due on June 30, 2019. On September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 9%. What amount of cash did Ireland receive from Cloverdale Bank?

Multiple Choice

• $43,680.

• $48,600.

• $46,998.

• $44,598.

4/ Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018:

Currency and coins	$	650
Balance in checking account		2,800
Customer checks waiting to be deposited		2,700
Treasury bills, purchased on 11/1/2018, mature on 4/30/2019		2,500
Marketable equity securities		9,300
Commercial paper, purchased on 11/1/2018, mature on 1/30/2019		5,300

What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

• $23,250.

• $11,450.

• $13,950.

• $8,650.

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