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5. Jones Company has notes receivable that have a fair value of $950,000 and a carrying amount of $1,250,000. Jones decides on December 31, 2017, to use the fair value option for these recently-acquired receivables. Which of the following entries will be made on December 31, 2017 to record the unrealized holding gain/loss? 300,000 300,000 300,000 300,000 300,000 a. Unrealized Holding Gain or Loss -Equity 300,000 Notes Receivable Notes Receivable Unrealized Holding Gain or Loss-Income Unrealized Holding Gain or Loss Equity b. Unrealized Holding Gain or Loss-Income. c. Notes Receivable 300,000 d. Notes Receivable 300,000 6. Which of the following is a method to generate cash from accounts receivable? Assignment as Collatera Yes Yes No No Fatoring No Yes Yes No 7. Which of the following is a characteristic of a perpetual inventory system? a. Inventory purchases are debited to a Purchases account. b. Inventory records are not kept for every item c. Cost of goods sold is recorded with each sale. d. Cost of goods sold is determined as the amount of purchases less the change in inventory 8. Walsh Retailers purchased merchandise with a list price of $150,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. Walsh should record the cost of this merchandise as a. $105,000 b. $108,000. $117,000. d. $150,000 9. During periods of rising prices, a perpetual inventory system would result in the same dollar amount of ending inventory as a periodic inventory system under which of the following inventory cost flow methods? Yes Yes No No No Yes Yes No d

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