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1. Bert had accounts receivable of $340,000 and an allowance for doubtful accounts of $12,400 just before writing off as worthless an account receivable from

1. Bert had accounts receivable of $340,000 and an allowance for doubtful accounts of $12,400 just before writing off as worthless an account receivable from Ernie Company of $2,300. After writing off this receivable what would be the balance in Bert's Allowance for Doubtful Accounts?

  • $12,400 credit balance.

  • $10,100 credit balance.

  • $10,100 debit balance.

  • $14,700 credit balance.

2. On November 1, Year 1, Salem Corporation sold land priced at $300,000 in exchange for a 4%, six-month note receivable.

Salem's balance sheet at December 31, Year 1, includes which of the following as a result of the sale of land on November 1?

  • Notes Receivable of $300,000 and Interest Receivable of $2,000.

  • Notes Receivable of $306,000 and Interest Receivable of $2,000.

  • Notes Receivable of $300,000 and Interest Receivable of $6,000.

  • Notes Receivable of $300,000 only.

3. Castle TV, Incorporated purchased 2,500 monitors on January 5 at a per-unit cost of $203, and another 2,500 units on January 31 at a per-unit cost of $290. In the period from February 1 through year-end, the company sold 4,400 units of this product. At year-end, 600 units remained in inventory.

Assume that Castle TV, Incorporated uses the LIFO flow assumption. The cost of the 600 units in the year-end inventory is:

  • $121,800.

  • $295,800.

  • $147,900.

  • $174,000.

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