On March 12, Korn Company sold merchandise in the amount of $7,800 to Babcock Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Korn uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babcock returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babcock pays the invoice on March 20, and takes the appropriate discount. The amount that Korn receives from Babcock on March 20 is:

On March 12, Korn Company sold merchandise in the amount of $7,800 to Babcock Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Korn uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babcock returns some of the merchandise, which is not defective. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry or entries that Korn must make on March 15 is:

Kandy Company sold $600 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 3% service charge for sales on its credit cards. Kandy electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record the collection from the credit card company would be:

Arkansas Best, Inc. offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $32,500 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

On April 1, Albuquerque, Inc. paid Penthouse Publishing Company $1,548 for 36-month subscriptions to several different magazines. Albuquerque debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Albuquerque, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?

The closing process takes place before financial statements have been prepared.

Galway Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Galway Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Galway makes to record the write off of the account on May 3 is:

Funtime Adventures pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $35,000, a building appraised at $105,000, and paddleboats appraised at $210,000. Compute the cost that should be allocated to the land.

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Galway Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Galway Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Galway makes to record the write off of the account on May 3 is: