-- 38 39 41 42 -- Question 40 (4 points) On Jan. 1st, the Karnes Co. began the year with a debit balance of $200,000 in Accounts Receivable and a credit balance of $18,000 in Allowance for Doubtful Accounts. During the year, the company reported total credit sales of $320,000 and cash collected on credit sales of $280,000. During the year, the company wrote off $20,000 in accounts deemed to be uncollectible. The company uses the % of credit sales method to estimate bad debt expense. Based on previous years and the current year, the company has determined 10% of credit sales to be uncollectible. The journal entry to record the credit sales of $320,000 would include a: 3 44 45 - -- 6 47 48 59 50 51 Debit to Accounts Receivable and a credit to Cash. Debit to Allowance for Doubtful Accounts and a credit to Sales Revenue. Debit to Accounts Receivable and a credit to Sales Revenue. Debit to Cash and a credit to Accounts Receivable. 52 -- -- 38 39 Question 41 (4 points) On Jan. 1st, the Karnes Co. began the year with a debit balance of $200,000 in Accounts Receivable and a credit balance of $18,000 in Allowance for Doubtful Accounts. During the year, the company reported total credit sales of $320,000 and cash collected on credit sales of $280,000. During the year, the company wrote off $20,000 in accounts deemed to be uncollectible. The company uses the % of credit sales method to estimate bad debt expense. Based on previous years and the current year, the company has determined 10% of credit sales to be uncollectible. The journal entry recorded to recognize bad debt expense would: 41 42 44 45 Increase stockholder's equity and decrease total assets. 47 48 50 51 Increase total assets and decrease total stockholders' equity. Increase total expenses and increase total assets. Decrease total assets and decrease total stockholders' equity. 2 38 39 $190,000 - $240,000. 41 42 Question 43 (4 points) Which of the following would not be depreciated? 44 45 Od Office Furniture used in the business. Land used in the business. 47 48 Inventory sold to customers. 9 50 51 Inventory sold to customers and Land used in the business. 52 Inventory sold to customers, land used in the business and office furniture used in the business