24. An analysis and aging of the accounts receivable of Raja Company at December 31 reveal the following data: Accounts Receivable $800,000; Allowance for doubtful accounts per books before adjustment $50,000 credit balance; and amounts expected to become uncollectible, $65,000. The cash realizable value of the accounts receivable at December 31, after adjustment is

a. $685,000

b. $750,000

c. $800,000

d. $735,000

25. Igor Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 1/10, n/30. What is the net cost of the goods if Igor Company pays within the discount period?

a. $11, 250 c. $11,880

b. $11,760 d. $12,000

26. Under the allowance method, Bad Debt Expense is recorded

a. several times during the accounting period.

b. for an amount that the company estimates it will not collect.

c. when an individual account is written off.

d. When the loss amount is known.

27. Financial information is presented below:

Operating Expenses $ 35,000

Sales Returns and Allowances 12,000

Sales Discount 3,000

Sales 140,000

Cost of Goods Sold 67,000

Interest Expense 8,000

Interest Revenue 4,000

The amount of operating income on the income statement would be

a. $19,000.

b. $23,000.

c. $58,000.

d. $125,000.

28. An aging of a companys accounts receivable indicates that $3,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the bad debt expense will be

a. $0.

b. $1,200.

c. $1,800.

d. $3,000.

29. On January 1, a machine with a useful life of five years and a residual value of

$5,000 was purchased for $25,000. What is the depreciation expense for year 2 using the straight-line depreciation method?

a. $4,000

b. $5,000

c. $12,000

d. $15,000