1.Dockery, Plc. started the year of 2018 with a balance of 1,000 in its general bad debt provision (allowance). During 2018, one of Dockery's customers filed for bankruptcy. Dockery was only able to recover 50 out of the 1,100 owed by the customer. As a result of this transaction, which Dockery recorded correctly:

a.Total assets don't change.

b.There is a decrease in total assets.

c.There is a decrease in shareholders' equity.

d.Both a. and c. are correct.

e.Both b. and c. are correct.

7.Piccadilly, Inc. sells gift cards which can be redeemed for store merchandise. These cards expire one year after their issuance. Below is some information about Piccadilly's gift cards:

31/12/2014

31/12/2013

Unearned Revenue

25,000

20,000

Gift cards sold in fiscal year

127,000

125,000

a.The amount of revenue recognized in fiscal year 2014 was 122,000 of which 102,000 relates to gift cards sold during 2014.

b.The amount of revenue recognized in fiscal year 2014 was 122,000, of which 97,000 relates to gift cards sold during 2014.

c.The amount of revenue recognized in fiscal year 2014 was 132,000, of which 107,000 relates to gift cards sold during 2014.

d.The amount of revenue recognized in fiscal year 2014 was 132,000, of which 112,000 relates to gift cards sold during 2014.

e.The amount of revenue recognized in fiscal year 2014 was 120,000, of which 100,000 relates to gift cards sold during 2014.