5. An aging of a company's accounts receivable indicates that $ 4,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $ 1,100 credit balance, the adjusting entry required to record estimated uncollectible accounts will include a: a) debit to Bad Debt Expense for $ 4,000. b) debit to Allowance for Doubtful Accounts for $ 2,900. c) debit to Bad Debt Expense for $ 2,900. d) credit to Accounts Receivable for $ 4,000. 6. An increase in the bad debt expense would not be caused by: a) an increase in cash sales. b) poor economic climate. c) an increase in credit sales. d) a decrease in the quality of customers. 7. An aging of a company's accounts receivable indicates $ 10,000 is estimated to be uncollectible. The company has a $ 2,000 debit balance in its allowance for doubtful accounts. The adjustment to record estimated credit losses for the period will require a(n): a) $ 8,000 debit to Bad Debt Expense. b) $ 8,000 credit to the Allowance for Doubtful Accounts. c) $ 12,000 debit to Bad Debt Expense. d) $ 12,000 credit to Accounts Receivable. 8. Allowance for Doubtful Accounts on the balance sheet: a) is offset against total current assets. b) increases the carrying amount of accounts receivable. c) appears under the heading "Current Liabilities." d) decreases gross accounts receivable. 9. Resolve Inc. has prepared the following aging schedule for the company at December 31, 2021. The company uses the percentage of receivables approach to estimate uncollectible accounts: Number of Days Outstanding 0-30 31-60 61-90 91-120 Over 120 days days days days days Accounts $220,000 $90,000 $40,000 $10,000 $15,000 Receivable 1% 4% 8% 16% 30% Uncollectible Estimated Uncollectible $2,200 $3,600 $3,200 $1,600 $4,500 | Accounts % Assuming the company has a $2,500 credit balance in the allowance account at the beginning of the period, the journal entry to record bad debt expense will include a: a) debit to Bad Debt Expense for $ 15,100. b) credit to Bad Debt Expense for $ 12,600. c) debit to the Allowance account for $ 15,100. d) credit to the Allowance account for $ 12,600. 10. How is the allowance for doubtful accounts presented in the financial statements? a) as an expense in the income statement. b) as a contra account beneath accounts receivable on the balance sheet. c) as an accrued liability on the balance sheet. d) as a decrease to owner's equity in the statement of owner's equity. 11. Which one of the following items is NOT considered a part of the cost of a truck purchased for business use? a) insurance during transit. b) truck licence. c) freight charges. d) cost of lettering on side of truck