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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:

On November 1, Oracell Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on  November 1 to record the acceptance of the note?

A debit is used to record an increase in all of the following accounts except:

Murphy, Inc. installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?

Permanent accounts include all of the following except:

On November 1, Broome, Inc. signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)

Bevins, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

Andrews Interiors had the following accounts and balances at December 31:  Account Debit   Credit Cash $ 20,000         Accounts Receivable   6,000         Prepaid Insurance   1,500         Supplies   5,000         Accounts Payable       $ 500   Common Stock         9,000   Retained Earnings         7,200   Dividends   1,000         Service Revenue         20,000   Utilities Expense   2,000         Salaries Expense   1,200         Totals $ 36,700   $ 36,700      Using the information in the table, calculate Andrews Interiors reported net income for the period.

Which of the following accounts could not be classified as a current liability?

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude: