27.An analysis and aging of the accounts receivable of Downs Company at December 31 revealed the following data: Accounts Receivable... Allowance for Doubtful Accounts per books before adjustment (Cr.).. Amounts expected to become uncollectible. 950,000 100,000 109,000 The cash realizable value of the accounts receivable at December 31, after adjustment, is: a. 941,000 b. 850,000 c. 841,000 d. 741,000 28. Franks Company has a debit balance of $3,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, Franks estimates that $60,000 of its receivables are uncollectible. The amount of bad debts expense which should be reported for the year is: a. $3,000 b. $57,000 c. $60,000 d. $63,000 29. Which of the following transactions affects only statement of financial position accounts? a. Recovery of a bad debt using the allowance method. b. Recording bad debt expense using the allowance method. c. Writing off a bad debt using the direct write-off method. d. Recording bad debt expense using the percentage of sales basis. 30. Which of the following statements is false regarding the different bases used for the allowance method? a. Three bases are generally accepted, the percentage of sales, the percentage of receivables, and the direct write-off. b. Management can choose whichever basis it prefers. c. If management wishes to emphasize the cash realizable value of receivables it will select the percentage of receivables basis. d. The company must determine its past experience with bad debt losses regardless of which basis it selects