1.Midas Company, which has an adequate amount in its Allowance for Doubtful Accounts, writes off as uncollectible an account receivable from a bankrupt customer. This action will:

a.Reduce total current assets

b.Reduce net income

c.Increase total current assets

d.Have no effect on total current assets

e.None of the above

Use the following information for the next question:

Following is selected information for Fred Company, AFTER year-end adjusting entries:

For year ended December 31:	2004	2003
Sales	$5,000,000	$4,500,000
Bad Debts Expense	120,000	110,000
As of December 31:
Accounts Receivable (gross)	$350,000	$300,000
Allowance for Bad Debts	10,000	20,000

2.On the basis of the information provided for Fred Company, the Accounts Receivable written off in 2004 were:

Use the following information for the next 4 questions:

Royal Corp. had Accounts Receivable of $700,000 and an Allowance for Doubtful Accounts of $50,000 just before writing off an account receivable from Filo Company of $10,000.

3.The net realizable value of the accounts receivable beforethe write-off were:

4.Gross Accounts Receivable afterthe write-off are:

5.The balance in the Allowance for Doubtful Accountsafterthe write-off is:

6.The net realizable value of the accounts receivable afterthe write-off are: