1. At the end of the year, Overland Company has a $400,000 debit balance in Accounts Receivable. The Allowance for Uncollectible Accounts has a $3,500 credit balance. Just before making adjusting entries Overland is notified that one of its customers is in bankruptcy and will not pay the $500 owed to Overland. Sales totaled $700,000 for the period. Based on an aging of Accounts Receivable analysis, Overland estimated that $12,000 of accounts receivable may be uncollectible. Using the Aging of Accounts Receivable method, what is the bad debt expense for the period?

2. Which of the inventory cost flow assumption is likely to produce the highest net income and the highest cost of goods sold during a period of inflation?

3. What would you expect to be the largest expense category on the Income Statement of a merchandiser like Wal-Mart, Target or Home Depot?

a. operating expense

b. marketing expense

c. depreciation expense

d. cost of goods sold

At the end of the year, Overland Company has a $400,000 debit balance in Accounts Receivable. The Allowance for Uncollectible Accounts has a $3.500 credit balance. Just before making adjusting entries Overland is notified that one of its customers is in bankruptcy and will not pay the $500 owed to Overland. Sales totaled $700,000 for the period. Based on an aging of Accounts Receivable analysis, Overland estimated that $12,000 of accounts receivable may be uncollectible. Using the Aging of Accounts Receivable method, what is the bad debt expense for the period? $9.000 $10.500 $12,000 $8.500 QUESTION 15 Which of the inventory cost flow assumption is likely to produce the highest net income and the highest cost of goods sold during a period of inflation? LIFO will result in the highest Net Income and FIFO will result in the highest COGS. FIFO will result in the highest Net Income and LIFO will result in the highest COGS. O FIFO will result in the highest Net Income and the highest COGS. OLIFO will result in the highest Net Income and the highest COGS QUESTION 16 What would you expect to be the largest expense category on the Income Statement of a merchandiser like Wal-Mart, Target or Home Depot? Operating Expenses