Which of the following accounts is NOT used to account for ...

[cagreen833]

Which of the following accounts is NOT used to account for merchandise sales transactions?
 a. Sales
   b. Sales Tax Payable
   c. Sales Returns and Allowances
   d. Accounts Payable

Question 2

100,000 of 9, 10-year bonds were issued for 106,710 when the market rate of interest was 8. The bonds pay interest once a year.
 
  1. How much interest will be paid in cash in the first year?
  2. How much interest expense will be reported for the first year, assuming the company uses effective-interest amortization?
  3. How much interest expense will be reported for the first year, assuming the company uses straight-line amortization?

[sylvia]

Answer to Question 1

d

Answer to Question 2

1. 9,000 = 100,000 x 0.09
2. 8,536.80 = 106,710 x 0.08
3. 8,329 = 9,000 - (6,710 premium / 10 years)

[cagreen833]

Excellent

[atrochim]

Thanks for the timely response, appreciate it