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42) A company uses the percent of sales method to determine its bad debts expense. At the end of the curent year, the company's unadjusted

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42) A company uses the percent of sales method to determine its bad debts expense. At the end of the curent year, the company's unadjusted trial balance reported the following selected amounts: S 356,000 debit 510 debit Accounts receivable Allowance for uncollectible accounts et Sales 801,000 credit All sales are made on credit. Based on past experience, the company estimates 0.5% of net credit sale be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? A) Debit Bad Debts Expense $1780; credit Allowance for Doubtful Accounts $1780. B) Debit Bad Debts Expense $4005; credit Allowance for Doubtful Accounts $4005. C) Debit Bad Debts Expense $4515; credit Allowance for Doubtful Accounts $4515. D) Debit Bad Debts Expense $2290; credit Allowance for Doubtful Accounts $2290 E) Debit Bad Debts Expense $3495; credit Allowance for Doubtful Accounts $3495. 43) A company purchased a delivery van for $22,800 with a salvage value of $2400 on September I, Year 1. It has an estimated useful life of 6 years. Using the straight-line method, how much deionen should the compny reopic1 B) $1133. C) $3800. A) $1267. D) S850. E) $3400. 44) A company's inventory records report the following in November of the current year 6 units @ $24 Beginning November l November 2 12 units@$26 Purchase Purchase 8 units@ $28 November 12 On November 8, it sold 14 units for $54 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 14 units sold? A) S680 E) S528 D) S380 C) $572 B) S360 45) A company had net sales of $752,000 and cost of goods sold of $543,000. Its net income was S17,530. The company's gross margin ratio equals: A) 18.9% E) 27.8% D) 35.2% C) 34.7%

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