payments of $7,048 at the end of each year. The appropriate rate of
interest is 11%, and the truck has a useful life of 5 years with no
salvage value. Prepare Irwin’s 2012 journal entries.
SET 2
1) Which of the following is considered cash?
2) Bank overdrafts, if material, should be
3) Which of the following is NOT considered cash for financial
reporting purposes?
4) If a company employs the gross method of recording accounts
receivable from customers, then sales discounts taken should be
reported as
5) Which of the following methods of determining annual bad debt
expense best achieves the matching concept?
6) The advantage of relating a company's bad debt expense to its
outstanding accounts receivable is that this approach
7) The failure to record a purchase of mer¬chandise on account even
though the goods are properly included in the physical inven¬tory
results in
8) Belle Co. received merchandise on consignment. As of March 31,
Belle had recorded the transaction as a purchase and included the
goods in inventory. The effect of this on its financial statements for
March 31
9) Eller Co. received merchandise on consignment. As of January 31,
Eller included the goods in inventory, but did NOT record the
transaction. The effect of this on its financial statements for January
31
10) The use of a Purchase Discounts account implies that the recorded
cost of a purchased inventory item is its
11) Which method of inventory pricing best approximates specific
identification of the actual flow of costs and units in most
manufacturing situations?
12) When using the periodic inventory system, which of the following
generally would NOT be separately accounted for in the computation
of cost of goods sold?