13) Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 months. The price of the specialized bike is $700. When sold separately, a maintenance contract is $200 and a comparable but non-specialized bike is $600. Which of the following is correct? A) Neakanie must allocate the purchase price based on the stand-alone selling prices of the bike and the service. B) Neakanie will recognize $350 of revenue at the date of sale and the remaining $350 at the end of 12 months. C) Neakanie fulfills its performance obligation at the time of delivery of the bike. D) Neakanie will recognize $700 of revenue at the end of 12 months. 14) The gross profit percentage is an indication of how: A) efficient management is in utilizing assets. B) much cash is generated per dollar of sales. C) well management is controlling expenses. D) measures the percentage of profit earned on each dollar of sales. I 15) When goods are sold to a customer with credit terms of 2/15, n/30, the customer will receive a: A) 2% discount if they pay 15% of the amount due within 30 days. B) 15% discount if they pay within 2 days. C) 15% discount if they pay within 30 days. D) 2% discount if they pay within 15 days. 16) Libre, Inc. has experienced bad debt losses of 4% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $100,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $500. Net credit sales during the year were $150,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year? A) $5,600 B) $6,000 C) $6,400 D) $4,000