22. If a compan accounts expense: y uses a percentage of net sales in computing the amount of uncollectible A) No valuation allowance will be req B) The relationship between revenue and expenses is being stressed more n the valuation of receivables at the balance sheet date. C) The existing balance in the Allowance for Doubtful Accounts will be increased sulficiently to equal the probable loss indicated by the percentage of net sales computation. y past-due accounts will be listed as a separate item in the balance sheet Shawn, Inc. uses the allowance method supported by an aging of its accounts statements. What method of recognizing this expense does Shawn use in its 23. receivable to recognize uncollectible accounts expense in its income tax return? A) It must use the same method. financial B) The direct write-off method. ) Either the balance sheet or income statement approach is acceptable. D) None, since uncollectible accounts expense is not deductible for income tax purposes. The accounts receivable turnover rate for Astaire Corporation is 8, and for Rogers Company is 10. These statistics indicate that 24. A) Rogers collects its accounts receivable within 10 days on average, Astaire collects its accounts receivable in 8 days on average. B) Rogers writes off as uncollectible a greater percentage of its accounts receivable than does Astaire Company C) Rogers collects its accounts receivable faster than does Astaire Company D) Rogers makes on average 10 credit sales annually to each of its customers, while Astaire makes 8 credit sales to each customer. An Unrealized Holding Gain (or loss) on Investments classified as "available- 25. for-sale" securities: A) Is reported in the asset section of the balance sheet, as an adjustment to the B) Is reported in the stockholders' equity section of the balance sheet, as either carrying value of the marketable securities. an increase or decrease in total stockholders' equity gains and losses from sales of securities. securities were sold as of the balance sheet date in the current period income statement, combined with realized D) Indicates the amount of cash a company would receive if the marketable