1. Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

a. Allowance for Doubtful Accounts will be credited.

b. Cash will be debited.

c. Accounts Receivable will be debited.

d. Bad Debt Expense will be credited.

2. The difference between the balance in Accounts Receivable and the balance in the Allowance for Doubtful Accounts is called the net realizable value of the receivables. True False

3. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $661,395 and Allowance for Doubtful Accounts has a balance of $24,008. What is the net realizable value of the accounts receivable?

Select the correct answer.

$637,387

$661,395

$685,403

$24,008

4.Allowance for Doubtful Accounts has a credit balance of $880 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $12,080. Which of the following entries records the proper adjustment for Bad Debt Expense?

Select the correct answer.

debit Allowance for Doubtful Accounts, $12,960; credit Bad Debt Expense, $12,960

debit Allowance for Doubtful Accounts, $11,200; credit Bad Debt Expense, $11,200

debit Bad Debt Expense, $11,200; credit Allowance for Doubtful Accounts, $11,200

debit Bad Debt Expense, $12,960; credit Allowance for Doubtful Accounts, $12,960