Question

1.

Consider the following facts:

– Company A sells goods on credit to Company B on July 9.

– The total sale was for $3,000.

– The terms of the sale were 1/10, n/60

– Company A receives payment on July 18.

Which of the following is true regarding the journal entryCompany A makes on July 18?

a. Accounts Receivable will be credited for $2,970

b. None of these answers are correct

c. Cash will be debited for $3,000

d. Sales Discounts will be debited for $30

e.Sales Discounts will be debited for $60

2.

Consider the following facts:

– Company A had merchandise inventory of $550,000 at January1

– For the year, it had purchases of $2,250,000

– For the year, it had net sales of $3,200,000

– The physical inventory on December 31 showed $500,000 in thewarehouse

– Company A's gross profit on sales was 30%

– Company A's suspects some of its ending inventory is missingdue to theft

The estimated cost of the missing inventory is:

a.$150,000

b. $60,000

c. $1,340,000

d. $100,000

e. None of these answers are correct