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____ 65. The bank reconciliation

a.	is an old-school and outdated practice
b.	is part of the internal control system
c.	is for information purposes only
d.	is sent to the bank for verification

____ 66. On October 1, Blazer Company receives a 6% interest bearing note from Ram Company to settle a $20,000 account receivable. The note is due in six months. At December 31, Blazer should record interest revenue of

a.	$100
b.	$200
c.	$300
d.	$600

____ 67. What is the type of account and normal balance of Allowance for Doubtful Accounts?

a.	Contra asset, credit
b.	Asset, debit
c.	Asset, credit
d.	Contra asset, debit

____ 68. The amount to be used by the buyer to record for the cost of merchandise purchased for resale, includes

a.	only the list price
b.	only the freight paid
c.	the list price plus any freight paid
d.	the list price less any freight paid

____ 69. Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was

a.	deducted from the balance per depositor's records
b.	deducted from the balance per bank statement
c.	added to the balance per bank statement
d.	added to the balance per depositor's records

____ 70. The following lots of a particular commodity were available for sale during the year

Beginning inventory	10 units at $50
First purchase	25 units at $53
Second purchase	30 units at $54
Third purchase	15 units at $60

The firm uses the periodic inventory system and there are 25 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the first-in, first-out method?

a.	$1,295
b.	$1,140
c.	$1,440
d.	$1,170

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