2) Customer G. Smith owed Stonehollow Electronics $425. On April 27, 2018, Stonehollow determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write-off method On July 15, 2018, Stonehollow received a check for $425 from the customer. How should the July 15, 2018 transaction be recorded? A) July 15 Accounts Receivable - G. Smith Bad Debt Revenue 425 July 15 Cash Accounts Receivable - G. Smith 425 B) July 15 Cash Accounts Receivable - G. Smith 425 C) July 15 Cash Bad Debt Expense D) July 15 Accounts Receivable - G. Smith Bad Debt Expense 425 July 15 Cash Accounts Receivable - G. Smith 5) The entity that signs the promissory note and promises to pay the required amount is the A) banker of the note C) payee of the note B) holder of the note D) maker of the note 7) At the beginning of 2018, Uptown Travel, Inc. has the following account balances! Accounts receivable $45,000 (Debit) Allowance for Bad Debts $5000 (Credit) During the year, credit sales were $810,000 Cash collected on credit sales was $760,000, and $18,000 was written off. Uptown uses the aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was $30,000. The amount of Bad Debts Expense for 2018 is A) $30,000 B) $43,000 C) $12,000 D) $13,000 11) The asset turnover ratio measures A) how efficiently a business uses its sales to finance the assets B) how the ending inventory helps increase the value of assets C) how efficiently a business uses its net profit to finance the assets D) how efficiently a business uses its average total assets to generate sales 14) Under the equity method, the investor_ A) must use the LIFO method for tax purposes B) must debit the Equity Investments account when a dividend is received C) debits the Revenue from Investments when the investee reports income D) must record its share of the investee's net income 15) 15) Under the equity method, dividend revenue is treated as A) dividend revenue B) a return of capital C) a credit to current assets D) a debit to revenue from investments 17) When a trading debt investment is disposed of A) the Trading Debt Investments account is debited B) the fair value adjustment is used in determining the calculation of the gain or loss C) the amount of gain or loss is calculated as the difference between the cash received and the cost of the debt investment disposed of D) an unrealized holding loss is reported on the income statement