1 on the December 31, 2014 balance sheet of Vanoy Co., the current receivables consisted of the 60,000 Trade accounts receivable Allowance for uncollectible accounts Claim against shipper for goods lost in transit (November 2014) Selling price of unsold goods sent by Vanoy on consignment at 130% of cost (not included in Vanoy's ending inventory) 26,000 Security deposit on lease of warehouse used for storing some inventories At December 31, 2014, the correct total of Vanoys current net receivables was a, $61,000 b, $87,000 c, $91,000 d. $117,000. 2. Ace Co. prepared an aging of its accounts receivable at December 31, 2014 and determined that the net realizable value of the receivables was $600,000. Additional information is available as follows: Allowance for uncollectible accounts 4 credit balance 68,000 Accounts written off as uncollectible during 2014 Accounts receivable at 12/31/14 Uncollectible accounts recovered during 2014 10.000 For the year ended December 31, 2014, Ace's uncollectible accounts expense would be a, $50,000. b, $46,000. C. $32.000. d, $18,000, 3. Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account a. increases the allowance for uncollectible accounts. b, has no effect on the allowance for uncollectible accounts. c, has no effect on net income. d. decreases net income. 4. On January 1, 2014, West Co. exchanged equipment for a $600,000 zero-interest-bearing note due on January 1, 2017. The prevailing rate of interest for a note of this type at January 1, 2014 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in West's 2015 income statement? b, $45,000 $49,500 d, $60,000 5. On June 1, 2014, Yang Corp. loaned Gant $400,000 on a 12% note, payable in five annual installments of $80,000 beginning January 2, 2015. In connection with this loan, Gant was required to deposit $4,000 in a zero-interest-bearing escrow The amount held in escrow is to be returned to Gant after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2014. Gant made timely payments through November 1, 2014. January 2, 2015, Yang received payment of the first principal installment plus all interest due. At December 31, 2014, Yang's interest receivable on the loan to Gant should be b, $4,000. c, $8,000 d, $12,000