20. Chen Company's account balances on December 31, 2021, for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2021 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for A) $29,000. B) $27,500. C) $26,000. D) $8,000. 21. Benedict Corporation reports the following information: Net income Dividends on preferred stock Dividends on common stock Weighted average common shares outstanding Benedict should report earnings per share of A) $1.80. B) $2.16 C) $2.64. $750,000 $210,000 $ 90,000 250,000 D) $3.00. 22. When the Round Company decided to adopt the dollar-value LIFO method it had a January 1 inventory of $170,000. The purchases for that year amounted to $1,000,000 with sales totaling $1,500,000. The price index was 110 and the December 31 inventory at year-end prices was $230,700. What would the gross profit for this company be? A) 439,300. B) 670,000. C) 560,700. D) 543,700. 23. Which of the following should be reported as a prior period adjustment? A) B) PROD Change in Estimated Lives of Depreciable Assets Yes No Yes No: Mistakes in the Application of Accounting Principles Yes Yes No No