12. When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a a. debit to an expense account. b. credit to an expense account. C. credit to the Allowance account. d. debit to the Allowance account. 13. Helig Company has a $150,000 balance in Accounts Receivable and a $1,000 debit balance in Allowance for Doubtful Accounts. Credit sales for the period totaled $900,000. What is the amount of the bad debt adjusting entry if Helig uses a percentage of receivables basis (at 10%)? a $15,000 b. $14,000 C. $16,000 d. $15,200 14. The constraint of conservatism is best expressed as a. the cost of applying an accounting principle should not exceed its benefit b. only material items should be recorded and reported c. when in doubt, choose the method that will least likely overstate assets and net income. d. the lower of cost or market method should be used for inventories. 15.Barker Company's records show the following for the month of January Total Retained Earnings at January 1. $400,000 Total Retained Earnings at January 31 ... 500,000 Total Revenues 670,000 Total Dividends Declared ........ 30,000 Total expenses for January were a $740.000 b. $770,000 c. $570,000 d. $540,000 16. Jetson Company's financial information is presented below. $ 2222 Purchase Returns and Allowances $ 15.000 Sales Sales Returns and Allowances 30.000 chandise Inventory Ending Merchandise Inventory 35.000 250,000 Cost of Goods Sold Not Sales 180.000 Gross Profit Beginning Merchandise Inventory 7777 ???? 170.000 Purchases The missing amounts above are: Sales Beginning Inventory a. $280,000 $45.000 b. $220.000 $45,000 c. $280,000 $60,000 d. $220.000 $60,000 Gross Profit $70,000 $100,000 $70,000 $100,000