Morton Company had the following select transactions. Apr. \quad 1,2016 \quad Accepted Remington Company's 1-year, 12 % note in \quad \quad \quad \quad \quad \quad \quad \quad settlement of a $ 25,000 account receivable.
July \quad 1,2016 \quad Loaned $15,000 cash to Jenny Green on a 9-month, 10 % \quad \quad \quad \quad \quad \quad \quad note.
Dec. \quad 31,2016 \quad Accrued interest on all notes receivable.
Apr. \quad 1,2017 \quad Received principal plus interest on the Remington note.
Apr. \quad 1,2017 \quad Jenny Green dishonored its note: Morton expects it \quad \quad \quad \quad \quad \quad \quad \quad \quad will eventually collect. Instructions
Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.

Which one of the following statements is not true concerning the retail inventory method?

A) Net markups and markdowns are always added and subtracted in order to compute the retail value of ending inventory.
B) Markups and markdowns are recorded only at retail.
C) In the lower of average cost or market method, net markups are excluded from the computation of the cost-to-retail ratio.
D) In computing the cost-to-retail ratio, purchase discounts affect only the cost of purchases and not the retail amount of purchases.

Shira purchased a refrigerator from ABC Appliance store for $800. She takes the refrigerator home and discovers that it is defective. She calls ABC Appliance store and tells them that she would like to return the refrigerator. ABC Appliance store tells her that they have assigned the promissory note she provided the store in order to purchase the refrigerator to a finance company and that the finance company, as a holder in due course, is not subject to defenses. Which of the following is true regarding the rights of parties?

A) The finance company is subject to the defenses of Shira because of the Federal Trade Commission rule created to protect consumers.
B) ABC Appliance store is correct in that Shira cannot assert her defenses against the finance company.
C) Shira can assert her defenses against the finance company only if she can prove that the finance company had knowledge that ABC Appliance store sold defective equipment from time to time.
D) Shira can assert her defenses against the finance company only because she gave notice of the problem within 5 days of the sale.
E) Shira can assert her defenses against the finance company only if she agrees to arbitrate the dispute.

In a fast food outlet, the cost of advertising is classified as:

A) design.
B) marketing.
C) production/delivery.
D) customer support.

The conflict management style of accommodation is characterized by downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs.

The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $24,640
B) $33,760
C) $30,080
D) $5,440