5) Which of the following would be included in the journal to record an NSF check? A) a debit to Bank Expense and a credit to Cash B) a debit to Cash and a credit to Accounts Receivable C) a debit to Accounts Payable and a credit to Cash D) a debit to Accounts Receivable and a credit to Cash 6) Which of the following is included in the denominator of the acid-test ratio? A) total current liabilities less accounts payable B) total current assets C) total current liabilities D) total liabilities 7) At the beginning of 2018, Uptown Travel Company has the following account balances: Accounts receivable $45,000 (Debit) Allowance for Bad Debts $6000 (Credit) During the year, credit sales were $850,000. Cash collected on credit sales was $770,000, and $17,000 was written off. Uptown uses the aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was $26,000. The amount of Bad Debts Expense for 2018 is A) $37,000 B) $11,000 C) $9000 D) $26,000 8) The following information is from the records of Chicago Photography: $24,000 (debit) Accounts Receivable, December 31, 2019 Allowance for Bad Debts, December 31, 2019 prior to adjustment Net credit sales for 2019 Accounts written off as uncollectible during 2019 700 (debit) 91,000 Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $2950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. A) $21,050 B) $21,750 C) $20,350 D) $19,950 9 ) 9) Modern Designs is a new business. During its first year of operations, credit sales were $43,000 and collections of credit sales were $34,000. One account, $625, was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. Bad debts expense for the first year of operations is_ A) $1290 B) $625 C) $2310 D) $665 10) 10) A company issues a 60-day, 12% note for $16,000. What is the principal amount of the note? (Round your answer to the nearest dollar.) A) $17,920 B) $15,680 C) $16,320 D) $16,000