21 Question 23 (2 points) If a company uses the direct write off method of estimating bad debts expense for tax purposes, they cannot use the aging approach for the books. 24 True False 27 30 Question 24 (2 points) If a company has a Freight In account on their books, they must be using the perpetual inventory method. 33 True False 36 39 Question 25 (2 points) A company has overdrawn their checking account by $5000 in Second National Bank. This is their only account in Second National, but they have a positive $15,000 cash balance in Third National Bank. Cash should be listed on the balance sheet as a net $10,000. True False Question 26 (2 points) Question 26 (2 points) A company's internal records show they made a $5000 deposit on December 31st that has not yet cleared the Bank. In the Bank Reconciliation this should be listed as a subtract item on the Book side. True False Question 27 (2 points) A company's bank statement shows that the bank received a direct deposit of $1050 during the month. This represents a collection of a $1000 note receivable and $50 of interest from the company's customer. This should be listed as a PLUS item for $1050 on the BANK SIDE of the bank reconciliation. True False