(4 points) 2. What is the amount of the Uncollectible Account Expense that will be reported in the Income Statement? a) $ 2,602 b) $ 2,912 c) $ 3,222 You MUST show your calculations: The company has the following transactions during the year ol. A Provided $8.400 of services on account 8. Wrote off of $31 of uncollectible accounts receivable C. Recorded the adjusting entry, and estimated that uncollectible account expense would be 1% of revenue earned (4 points) 3. Based on the event "A" when the services were provided, determine how this transaction will affect the Financial Statements a) Increase Accounts Receivable and increase Retained Earnings by S8,400 Increase Revenues and increase Net Income by $8,400. The cash flow is not affected. b) Increase Cash and increase inventory by $8.400 Increase Net Income. The cash flow is affected. c) Increase Accounts Receivable and increase Retained Earnings by $8,400 Increase Expenses and decrease Net Income by $8,400. The cash flow is not affected. (4 points) 4. Based on the event "B" when the write off was registered, determine how this transaction will affect the Financial Statements a) Increase Accounts Receivable and increase Allowance for Uncollectible Accounts by $31. Increase Expenses and decrease Net Income. b) Decrease Accounts Receivable and decrease Allowance for Uncollectible Accounts by $31. c) Increase Accounts Receivable and increase Allowance for Uncollectible Accounts by $31. Increase Expenses and decrease Net Income. The cash flow is affected by $31 less (4 points) 5. Based on the event "C" when the adjusted entry was registered, determine how this transaction will affect the Financial Statements a) Decrease Allowance for Uncollectible Accounts and decrease Retained Earnings by S48. Increase expenses and decrease Net Income by $48. b) Decrease Allowance for Uncollectible Accounts and decrease Retained Earnings by $84. Increase expenses and decrease Net Income by $84. c) Increase Allowance for Uncollectible Accounts and decrease Retained Earnings by S84 Increase expenses and decrease Net Income by 584 (4 points) 6. If the Accounts Receivable has a balance of $430,000 after the period ending adjustment, the Uncollectible Account Expense has balance of $35,000 and the Allowance for Uncollectible Accounts has a balance of $25,000. Determine the net realizable value of the Accounts Receivable. a) $430,000 - $35,000 - $25,000 = $370,000 b) $430,000 - $35,000 $395,000 c) $430,000 - $25.000 - 5405,000 During the first year of operations, the company recognized revenues for $220,000 for services performed on account, and estimated the 3% of sales will be uncollected. The ending balance of the Accounts Receivable account was 545,000 (4 points) 7. Determine the amount of sales that was collected on cash a) Service Revenue $220,000-$45,000 cash sales $175,000 b) Service Revenue 5220,000-15220,000 x 3) = cash sales $213.400 c) Service Revenue $220,000-$175,000 cash sales S45,000 (4 points) & Determine the amount of Uncollectible Account Expense a) $175,000 b) 56.600 d) $213.400 You MUST show your calculations The company uses the Allowance Method of Accounting for Uncollectible Accounts, and has the following data Accounts Receivable 566,000 Collections of Accounts Receivable $58,000 Estimate of Uncollectible Account 1% (4 points) 9. Determine the Accounts Receivable balance at the end of the accounting period. a) $66,000 - $58,000 $8,000 b) $66,000 - 1566,000 x 1) - 565,340 c) 566,000 x 1% 5660 (4 points) 10. How the collectible Account s will affect the accounting equation Financial Statements horizontal? a) Increase Allowance for Uncollectible Account and decrease Retained Earnings by $660 Increase Uncollectible Account Expense and decrease Net Income by 5660 The cash flow will be affected by $660 outflow b) Increase Allowance for Uncollectible Account and decrease Retained Earnings by $660 Increase Uncollectible Account Expense and decrease Net Income by 5660 The cash flow will not be affected by S660 outflow c) Increase Allowance for Uncollectible Account and increase Retained Earnings by S660 Increase Sales Revenue and increase Net Income by $660. The cash flow will be affected by S660 outflow (4 points) 11. After multiple actions trying to collect some accounts, the company rate of $320 of uncollectible accounts receivables. How this event will affect the accounting equation Financial Statements horizontal)? a) Decrease Accounts Receivable and decrease Retained Earnings by $300 Increase Uncollectible Account Expense and increase Net Income by $300 The cash flow will be affected by $330 outflow. b) Decrease Accounts Receivable and decrease Allowance for Uncolectible Account by $300 The cash flow will be affected by $330 outflow Decrease Accounts Receivable and decrease Allowance for Uncollectible Account by $300 The cash flow will not be affected by $330 outflow. (4 points) 12. The company recovered $50 of a receivable that was previously written oft How this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Account Receivable and increase Allowance for Uncollectible Account by 550 Increase Cash and decrease Account Receivable by S50 The cash flow will be affected by S50 inflow b) Decrease Account Receivable and decrease Allowance for Uncollectible Account by 550 Increase Cash and decrease Account Receivable by SSO The cash flow will be affected by S50 inflow c) Increase Cash and decrease Account Receivable by 550. The cash flow will be affected by SSO inflow On February 2, xox1 ABC Company lent money to DEF Enterprises for the amount of $10,000. The interest was 6% annual rate. (4 points) 13. Once ABC Company processed the loan of money, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Cash and increase Notes Receivable by $10,000 The cash flow will be affected by $10,000 inflow. b) Decrease Cash and increase Notes Receivable by $10,000. The cash flow will be affected by $10,000 outflow. c) Decrease Cash and decrease Notes Receivable by $10,000. The cash flow will be affected by $10,000 outflow. (4 points) 14. If ABC Company decided to register the interest adjusting entry at the end of the accounting period on December 31, xxxl; how this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Interest Receivable and increase Retained Earnings by $550. Increase Interest Revenue and increase Net Income by $550. b) Increase Interest Receivable and decrease Retained Earnings by $550. Decrease Interest Expense and decrease Net Income by $550. c) Increase Interest Receivable and increase Retained Earnings by $600. Increase Interest Revenue and increase Net Income by $600. (4 points) 15. Also, ABC Company wanted to register the interest accrual at the end of the accounting period on December 31, xox1; how this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Interest Receivable and increase Retained Earnings by $50. Increase Interest Revenue and increase Net Income by $50. b) Increase Interest Receivable and increase Retained Earnings by $60. Increase Interest Revenue and increase Net Income by $60. c) Increase Interest Receivable and increase Retained Earnings by $50. Decrease Interest Revenue and decrease Net Income by $50. (4 points) 16. On the maturity date, ABC Company collected the principal and the interest associated with the credit agreement. How this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Cash by $10,060, decrease Interest Receivable by $60, and decrease Notes Receivable by $10,000. The cash flow will be affected by $10,060 inflow. b) Increase Cash by $10,550, decrease Interest Receivable by $550 and decrease Notes Receivable by $10,000. The cash flow will be affected by $10,550 inflow. c) Increase Cash by $10,600, decrease Interest Receivable by $600, and decrease Notes Receivable by $10,000. The cash flow will be affected by $10,600 inflow. On January 1, 1, XYZ Company bought an equipment with the following information List Price $ 34,000 Insurance costs year Discount Rate Salvage Value FOB Destination Charges $ 240 Estimated Units of Production Installation Costs S900 Units Produced year Repair & Maintenance year 330 $490 $ 4.000 300 300 60.000 relation s amount for 14 points) 17. the company used the Units-of-Production Depreciation method, what is the the first year of production? a $6.005 b) $6.104 $5.990 You MUST how your calculations: On January 1 1 , the company purchased an equipment for the price of $95.000. In addition, paid $2.000 for installation costs. The estimated useful life is 5 years with a salvage value of $7,000. The company uses Straight-Line Depreciation Method 14 points 18. What is the depreciation express amount for the year wal? You MUST show your calculations: (4 points) 19. What is the depreciation expense amount for the year w2 You MUST show your calculations: (4 points) 20. What is the book value for the equipment at the end for the year wa] You MUST show your calculations: 14 points) 21. What is the accumulated depreciation amount at the end of the years You MUST show your calculations