16. If beginning inventory is understated, then: a.b.G.d.goodsavailableforsalewillbeoverstated.grossprofitwillbeoverstated.netincomewillbeunderstated.stockholdersequitywillbecorrectbecausetheerrorwillhavebeenreversed. 17. When preparing a bank reconciliation, deposits in transit are: a. added to the balance per bank statement. b. subtracted from the balance per bank statement. c. d. 18. CC owns a $600,000 building that was purchased four years ago. The firm was recording depreciation under straight line method, estimating a 20 -year service life and a $40,000 residual value. At the beginning of this, the 5 th year, CC determined that the residual value should be $60,000. As a result of this revision, depreciation in the current year would be: a.b.c.d.$24,250$26,750$27,000$30,500 19. Using the income statement approach, an estimate of uncollectible accounts may be calculated by taking a percentage of: a.b.c.d.netincome.allowancefordoubtfulaccounts.outstandingaccountsreceivable.creditsales. 20. The following data have been taken from the 20X4 accounting records of Kirby Corp.: Kirby estimates that 6% of its accounts receivable will be uncollectible. How much should Kirby record as Uncollectible Accounts Expense for 20X4? a.b.s.d.$780$2,700$3,780$6,780 21. On November 1, 20X8, Forte Company received a $12,000,3-month, 10% note. How much interest revenue should be reported in 20X8 on this note? a.b.c.&.$100.$200.$300.$1,200