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On September 1 of the current year, Prepaid Rent was debited for $3,000. This amount represents payment for one year of rent, paid in advance and effective on Sept 1. The adjusting entry on December 31 will involve a:

	1) debit to Rent Expense for $1,000
	2) debit to Rent Expense for $750
	3) credit to Rent Payable for $750
	4) credit to Rent Payable for $1,000

On September 30, 2019, the bank's records indicated that Laura Inc. has $25,913.46 in its chequing account. Laura Inc. was aware of three outstanding cheques for a total of $4,224.38. During September 2019, the bank rejected two deposited cheques from Laura Inc.'s customers totalling $1,308.38 because of insufficient funds. The bank also charged Laura Inc. $24.00 in service fees. Laura Inc. had not received notice about the bad cheques, but it had already recorded the service fees. Prior to any adjustments on September 30, 2019, Laura Inc.'s Cash account would have a balance of:

	1) $20,404.70.
	2) $22,997.46.
	3) $28,805.46.
	4) $31,422.22.

Which of the following statement regarding not-for-profit (NPO) organizations is false?

	1) Unlike for-profit corporations, NPOs have no owners.
	2) The primary mission for NPO is to provide services to meet the needs of its members.
	3) NPOs are generally tax-exempt.
	4) Net income is an effective indicator of NPOs' profitability.

Using the aging-of-accounts-receivable method to estimate uncollectible receivables, Tammy Co. estimates that $3,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Doubtful Accounts has a debit balance of $600. Bad debt expense to be reported on the income statement is:

	1) $4,350
	2) $600
	3) $3,150
	4) $3,750

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