1. On January 1, Year 1, the Accounts Receivable balance was $33,800 and the balance in the Allowance for Doubtful Accounts was $4,300. On January 15, Year 1, an $1,250 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

Multiple Choice

$28,250

$30,750

$29,500

$32,550

2.Farmer Company purchased machine on January 1, Year 1 for $71,000. The machine is estimated to have a 5-year life and a salvage value of $8,000. The company uses the straight-line method.

At the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life?

Multiple Choice

$3,150

$4,150

$5,040

$6,640

3.On January 1, Year 2 Grande Company had a $24,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $84,000 of service on account. The company collected $80,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.

What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?

Multiple Choice

$78,890

$80,500

$60,480

$84,000

4.At the beginning of Year 3 Omega Company had a $60,000 balance in its accounts receivable account and a $3,000 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events.

(1) Omega earned $200,000 of revenue on account

(2) Collected $210,000 cash from accounts receivable

(3) Wrote-off $2,000 of accounts receivable as uncollectible

Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is

Multiple Choice

$1,920.

$1,000.

$920.

$2,080.