QUESTION 7 If a merchandiser, like Lowe's, returns inventory to its supplier what effect will the return have on the books of the merchandise? O An increase in the Purchase Returns and Allowances account O An increase in the Sales Returns and Allowances account O An increase in the Purchases account O A decrease in the Accounts Receivable account QUESTION 9 What type of adjustment entails recording an expense before it is paid? O Deferred Expense O Deferred Revenue O Accrued Revenue O Accrued Expense QUESTION 23 General Motors issued S10.000.000. 6%.5-year bonds dated January 1, 2020 on January 1, 2020 The bonds pay interest semi-annually on June 30 and December 31 The bonds are issued to yield 4% What is the issue price of the bonds? O $10.897780 O $13.592.560 S10.890.080 O $11.760.040 QUESTION 26 At the end of the year. Overland Company has a $400.000 debit balance in Accounts Receivable The Allowance for Uncollectible Accounts has a $3500 credit balance Just before making adjusting entries Overland is notified that one of its customers is in bankruptcy and will not pay the $600 owed to Overland Sales totaled $700.000 for the period Overland estimated 15% of its sales may be uncollectible Under the Percentage of Sales method determine the bad debt expense for the period O $14.900 O $16.000 O $6.000 O S10 500 QUESTION 27 What would you expect to be the largest expense category on the income Statement of a merchandiser like Wal-Mart. Target or Home Depot Operating Expenses Depreciation Expense Cost of Goods Sold O Marketing Expense