1. On the balance sheet, the Allowance for Doubtful Accounts:

is included in current liabilities.

increases the reported Accounts Receivable, Net.

is reported under the heading "Other Assets."

is subtracted from Accounts Receivable.

2. Acme, Inc. had cost of goods sold of $2,000. If beginning inventory was $2,100 and ending inventory was $500, Acme's purchases must have been:

		$400.
		$600.
		$1,600.
		$3,600.