The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively.What is Paradise Pizza’s asset turnover?

Kansas Enterprises purchased equipment for $80,500 on January 1, 2024. The equipment is expected to have a ten-year service life, with a residual value of $7,200 at the end of ten years.Using the straight-line method, depreciation expense for 2025 and the book value at December 31, 2025, would be:

At December 31, Gill Company reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit balance) before adjustment. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

The choice of inventory cost flow assumptions affects which of the following amounts?

At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Accounts of $1,000 (credit balance) before adjustment. An analysis of Tremble’s December 31 accounts receivable suggests that 5% of the account balances are not expected to be collected. After adjustment, the balance of Allowance for Uncollectible Accounts will be:

Berry Company purchases a patent on January 1, 2024, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Company uses the straight-line method, what is the amortization expense for the year ended December 31, 2025?

ABO purchased a truck at the beginning of 2024 for $140,000. They sold the truck at the end of 2025 for $95,000. The expected service life of the truck was six years and the residual value was estimated to be $20,000. ABO uses straight-line depreciation. Which of the following will be included in the journal entry to record the sale of the truck?

Gross accounts receivable less ___________ equals net accounts receivable.

A company sold inventory for $1,200 that was previously purchased for $700. The company records which of the following when it sells the inventory using a perpetual inventory system?

At December 31, Amy Jo’s Appliances had account balances in Accounts Receivable of $311,000 and in Allowance for Uncollectible Accounts of $970 (credit balance) before adjustment. An analysis of Amy Jo’s December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for the year should be: