Reference no: EM132910637
Problem 1: Purchases Returns and Allowances
A) increase Inventory.
B) decrease Inventory.
C) have no effect on Inventory.
D) Not enough information provided.
Problem 2: Hardware Restoration had a purchase of $40,000, a purchase return of $10,000, and a purchase discount of $1,500. What is the impact on Inventory?
A) $28,500
B) $30,000
C) $51,500
D) $38,500
Problem 3: The entry to adjust for Unearned Rent becoming earned includes
A) a debit to Unearned Rent.
B) a credit to Unearned Rent.
C) a debit to Income Summary.
D) None of these are correct.
Problem 4: Unearned Rent is what type of account?
A) Asset
B) Revenue
C) Liability
D) Expense