31-35

Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $10,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment, what is the balance after adjustment?

		$10,000
		$12,000
		$8,000
		$2,000

An employee earns $50 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that th eemployee worked 50 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and the federal income tax to be withheld was $686. What is the net pay for the week?

		$3,000
		$2,989
		$2,089
		$1,089

A 60-day note receivable dated June 13 has a maturity date of

		August 13
		August 12
		August 11
		August 10

An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

		debit to Bad Debts Expense for $9,000
		debit to Allowance for Doubtful Accounts for $7,900
		debit to Bad Debts Expense for $7,900
		credit to Allowance for Doubtful Accounts for $9,000

Berry Corporation's comparative balance sheet for current assets and liabilities was as follows:

12/31/14 12/31/13

A/R $18,000 $14,400

Inventory 34,800 29,700

A/P 27,600 20,700

Dividends payable 8,400 10,800

Adjust net income of $160,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

		$161,800
		$160,000
		$158,200
		$168,400