14. AG Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the gross method to record sales made on credit, how much should be recorded as revenue? a. $24,500. b. $24,750. c. $25,000. d. $25,250.

16. The April 30, 2016 bank statement for Thimble Corporation shows an ending balance of $38,496. The unadjusted cash account balance was $32,395. The accountant for Thimble gathered the following info: There was a deposit in transit for $4,240

The bank statement reports a service charge of $39

The bank statement shows interest earned of $95

Outstanding checks totaled $10,935

The bank statement included a $650 NSF check deposited in April What is the true cash balance as of April 30, 2016? a. $27,656 b. $27,006 c. $31,801 d. $31,896

18. For the year ended December 31, 2017, Dent Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/17 $126,000

Provision for uncollectible accounts during 2017 90,000

Uncollectible accounts written off, 11/30/17 104,000

Estimated uncollectible accounts per aging, 12/31/17 156,000 After year-end adjustment, the bad debt expense for 2017 should be a. $120,000. b. $90,000. c. $156,000. d. $134,000.

19. How should accountants not estimate the amount of a company's bad debt expense? a. Adjust it based on which value would allow net income to beat analysts forecasts.

b. Utilize an aging schedule.

c. Compute as a percentage of credit sales.

d. Consult with trade association and business associates.

20. You just won the Georgia State Lottery. Your prize is $7.5 million spread out in even annual payments over the next 15 years. You have the option of taking the Cash Option, which gives you the calculated present value of your annuity using an annual interest rate of 8%. If you were planning on sticking any money earned from the lottery in a fund that has a guaranteed rate of 5%, (assuming away all tax consequences) which option would net you the most money at the end of 15 years? a. Taking the annuity payments and sticking them in the fund

b. Taking the Cash Option and sticking the money in the fund

c. It doesnt matter, both options will net you the same amount of money in 15 years