Use the following table:

	Case X			Case Y			Case Z
Cash	$	850		$	1,100		$	1,460
Short-term investments		0			0			580
Receivables		0			1,270			1,030
Inventory		2,500			1,160			4,880
Prepaid expenses		1,900			770			1,090
Total current assets	$	5,250		$	4,300		$	9,040
Current liabilities	$	2,700		$	1,350		$	4,280

Required: Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.)

2.On January 15, Tundra Co. sold merchandise to customers for cash of $47,000 (cost $32,000). Merchandise costing $12,000 was sold to customers for $17,800 on January 17; terms 2/10, n/30. Sales totalling $338,500 (cost $228,000) were recorded on January 20 to customers using MasterCard; assume the credit card charges a 2% fee. On January 25, sales of $83,000 (cost $55,700) were made to debit card customers. The bank charges Tundra a flat fee of 0.5% on all debit card transactions. Required: Prepare journal entries for each of the transactions described (assume a perpetual inventory system).

• 1

  Record the sale of merchandise to cash customers.

• 2

  Record the cost of sales.

• 3

  Record the sale of merchandise on terms 2/10, n/30.

• 4

  Record the cost of sales.

• 5

  Record the sale of merchandise less credit card expense.

• 6

  Record the cost of sales.

• 7

  Record the sale of merchandise less debit card expense.

• 8

  Record the cost of sales.