19. When a note receivable is dishonored, a. interest revenue is never recorded. b. bad debts expense is recorded. c. the maturity value of the note is written off d. Accounts Receivable is debited if eventual collection is expected. ersk The preferred method of accounting for uncollectible accounts is the: a. actual method. b. net realizable method. c. direct write-off method and the net realizable method d. allowance method 20. 21. The following information was available for Pete Company at December 31, 2018: beginning inventory S90,000, ending inventory $70,00, cost of goods sold $984,000: and sales $1.350,000. Pete's days in inventory in 2018 was a 21.6 days. b. 25.9 days. c. 29.7 days. d. 33.5 days. Kill Corporation's unadjusted trial balance includes the following balances (assume normal balances): Accounts Receivable Allowance for Doubtful Accounts Net Credit Sales $850,000 15,000 9,900,000 Bad debts are estimated to be 1.5% of sales on account what amount of bad debt expense will the company record for the year? a. $ 148,500 b. $ 133,500 c. S 163,500 d. $1,485,000 23. Allowance for Doubtful Accounts on the balance sheet is offset against total current assets. a. b. increases the cash realizable value of accounts receivable. appears under the heading "Other Assets." d. c. is offset against accounts receivable. Magneto Company had net credit sales during the year of $1,350,000 and cost of goods sold of $810,000. The balance in accounts receivable at the beginning of the year was $180,000, and the end of the year it was $120,000. What was the accounts receivable turnover? a. 5.6 b. 7.5 c. 9.0 24