11 The accountant at Landry Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $8,740. The LIFO method will result in income before taxes of $8,100. What is the difference in tax that would be paid between the two methods? a. $640 b. $448 C. $192 d. Cannot be determined from the information provided. 12 Smithson Corporation's unadjusted trial balance includes the following balances (assume normal balances): Accounts Receivable $3,357,000 Allowances for Doubtful Accounts $ 63,900 Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record? a. $201.420 b. $137.520 c. $133,686 d. $205,254 13 An analysis and aging of the accounts receivable of Watts Company at December 31 reveal these data: Accounts receivable $ 2,400,000 Allowance for doubtful accounts per books before adjustment (credit) 150,000 Amounts expected to become uncollectible 195,000 What is the cash realizable value of the accounts receivable at December 31 after adjustment? a. $2,055,000 b. $2,250,000 c. $2,400,000 d. $2,205,000 14 The account Allowance for Doubtful Accounts is classified as a(n) a. liability b. contra account of Bad Debt Expense. C. expense. d. contra account to Accounts Receivable