5. How much accrued interest should be reported on the payee\'s December 31 bala

Question

5. How much accrued interest should be reported on the payee's December 31 balance sheet on n S80,000, 8%, 8-month note receivable issued on August 17 A. $1,600 B. $3,600 C. $2,667 D. $5,600 E None of the above. 6. Toledo, Inc. returned $750 of goods originally purchased on credit from Mexico Industries. Using the periodic Inventory approach, Toledo would record this transaction as: A. Inventory 750 Accounts Payable 750 B. Accounts Payable 750 750 C. Purchase Returns and Allowances 750 Accounts Payable 750 D. Accounts Payable 750 Purchase Returns and Allowances 150 E. None of the above. 7. Saxophone, Inc.'s accounting records show the following at the year ending on December 31, 2014 Purchase Discounts S 5,600 7,800 350,010 23,500 28,800 6,400 Freight-In Beginning Inventory Ending laventory Purchase Returns and Allowances Using the periodic system, the cost of goods available for sale is: A. $350,010. B. $338,010. C $345,810 D. $369,310 E. $340,510. 8. Financial information is presented below Operating expenses $ 35,000 Sales returns & allowances 12,000 Sales discounts Sales revenue 140,000 Cot of goods sold ,00 85,000 3,000 Profit margin would be: A. 0.320 B. 0.040. C 0.285. D. 0.035 E. None of the above.

Explanation / Answer

5- A

because value is $80000

interest is 8% ,with 4 month they taken the receivable

so 80000$*8/100=6400$ /time of receivable=$1600

7- E

8- None of the above

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