18. C ompany ABC buys a new machine with a list price of $50,000 plus an 8% sales commission. Shipping costs are $800 FOB Destination. Installation costs are $1000. What cost does Company ABC record for the new machine?:* O a. $47,000 b. $50,000 c. $54,000 d. $55,000 Oe. $55,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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18. C ompany ABC buys a new machine with a list price of $50,000 plus an 8% sales
commission. Shipping costs are $800 FOB Destination. Installation costs are $1000. What
cost does Company ABC record for the new machine?: *
O a. $47,000
O b. $50,000
O c. $54,000
d. $55,000
e. $55,800
19. Acme Company ages its accounts receivables based on the following schedule:
Number of Days Past Due
Not Due
1-30 31-90 Over 90
Total accounts receivable 30,000 20,000 10,000
5,000
Estimated % uncollectible
3%
5% 15%
30%
If Acme's trial balance shows Allowance for Doubtful Accounts with a credit balance of
$400, what adjusting entry is necessary for the Allowance for Doubtful Accounts?: *
Oa. $1,500
O b. $3,400
O c. $4,500
d. $4,900
e. $5,300
20. Which of the following is defined as sales minus cost of goods sold?: *
a. Net income
Ob. Operating income
c. Retained earnings
Od. Income from continuing operations
Oe. Gross profit
21. Which tax is displayed on the Income statement?: *
O a. Sales tax
O b. Income tax
Oc. Excise tax
Od. Estate tax
Transcribed Image Text:18. C ompany ABC buys a new machine with a list price of $50,000 plus an 8% sales commission. Shipping costs are $800 FOB Destination. Installation costs are $1000. What cost does Company ABC record for the new machine?: * O a. $47,000 O b. $50,000 O c. $54,000 d. $55,000 e. $55,800 19. Acme Company ages its accounts receivables based on the following schedule: Number of Days Past Due Not Due 1-30 31-90 Over 90 Total accounts receivable 30,000 20,000 10,000 5,000 Estimated % uncollectible 3% 5% 15% 30% If Acme's trial balance shows Allowance for Doubtful Accounts with a credit balance of $400, what adjusting entry is necessary for the Allowance for Doubtful Accounts?: * Oa. $1,500 O b. $3,400 O c. $4,500 d. $4,900 e. $5,300 20. Which of the following is defined as sales minus cost of goods sold?: * a. Net income Ob. Operating income c. Retained earnings Od. Income from continuing operations Oe. Gross profit 21. Which tax is displayed on the Income statement?: * O a. Sales tax O b. Income tax Oc. Excise tax Od. Estate tax
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