19, Lail Ink accounts for bad debts using the allowance method. On June 1, Lail Ink wrote off Andrew Green's $2,500 account. Based on Lail's estimation of the balance in his account. What effect will this write-off have on Lail Ink's balance sheet at the time of the write-off

a, An increase to expense and a decrease to liabilities

b, No effect assuming that the allowance was at least $2,500

c, An increase to assets and an increase to expence

d, A decrease to assets and a decrease to owner's equity

20, Sandburg Veterinarian reports the following infomation for the year

Net credit sales $120,000

Average A/R 20,000

Cash Collections on credit sales 100,000

Caluculate Sandburg's receivables turnover ratio and average collection period.

21, On September 1, 2016, Middleton Corp loans cash and assepts a $6,000 note receivable that has a 8% annual interest rate due in nine months, Record the year-end adjusting entry to interest for 2016.

22, On December 31, 2015, Smith Jones has an A/R balance of $ 80,000 (debit) and Allowance for uncollectible Accounts $1,100 (credit). The company estimates uncollectible accounts based on an aging of A/R as shown below.

Amt Receivable Estimated % Uncollectible

Not yet due $48,000 5%

0-30 days past due $18,000 15%

31-90 days past due $10,000 40%

More than 90 days past due $4,000 80%

Total $ 80,000

Calculate the total Allowance amount and make the appropriate entry taking into account the current balance in the Allowance account