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A company sold merchandise for $8,000 on account with credit terms 2/10,n/30. The cost of the inventory sold was $4,500. Which of the following journal entries would be recorded on the date of sale? Debit Cost of Goods Sold 8,000; Credit Sales Revenue 8,000 Debit Accounts Receivable 4,500; Credit Inventory 4,500 Debit Cost of Goods Sold 4,500; Credit Inventory 4,500 Debit Cash 4,500; Credit Sales Revenue 4,500 BB Company has the following information at year-end before adjusting for bad debt: Credit Sales: $120,000 Accounts Receivable: $28,000 The company uses the income statement method to report bad debt, estimating 5% of credit sales will be uncollectible. Given this information, which of the following statements is true? The company should credit Bad Debt Expense $1,400. The company should debit Bad Debt Expense $6,000. The company should debit Bad Debt Expense for $1,400. The company should credit Bad Debt Expense $6,000. Assume a company has the following information: Note Receivable: $510,000 Interest Rate: 5% Term: 6 months Given this information, what is the amount of interest revenue to be earned over the term of the note? $512,125 $2,125 $25,500 $12,750 Which of the following statements is true when the Last-In-First-Out method of inventory is used? Inventory is sold based on the highest cost paid for purchases. The earliest purchased inventory remains unsold in ending inventory. Inventory is sold in the same order that it is purchased. The most recently purchased inventory remains unsold in ending inventory. A company had the following information available for its inventory: Beginning balance 40 units @ $2.50 Purchased 400 units @ \$3.25 on Jan 14th Sold 320 units on Jan 19th Using the FIFO method, what was COGS for the Jan 19th transaction? $800 $1,040 $1,300 $1,010

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