7. A company follows U.S. GAAP and uses the allowance method for ins accounts possible uncollectible. The following journal entry would tbe made, if the compeny Dr. Bad debt expense accounts receivable ad recelivalbleand Cr. Allowance for doubtful accounts Kx xs B. is to write off a customer's account(s). C. is to recover from the cash collection of a previously wrimen-off accoumts) D. None above is correct. 8. The Cred it Line Company reported net receivables of $2,200 million and $2,500 millions 12/31/2009 and 12/31/2010, after subtracting allowances for doubtful accounts of 560 million and $70 million at those respective dates. The Credit Line earned total credit sales of $55,000 million and recorded bad debt expense of $20 million for the year of 2010. How mach uncollectible receivables (in million) did the company write off in 2010 A. $10. B. $20. C, S60. D. $70. Rocky had a normal beginning balance of $5,000 and ending balance of $3,500 in its unearned revenue in 2010. In 2010, its unearned revenue was also credited by $1,500. How much unearned revenue had been earned during 2010? A. $1,500. B. $2,000. C. $3,000. D. $3,500. 9. The 10. Which of the following transactions will increase a company's total assets without increasing its owners' equity? A. Buying equipment on account. B. Issuing stock for cash. C. Payment of an account payable. D. Purchasing office equipment with a cash payment. 11. Which of the following items should be considered when estimating a company's future earnings? Items (1) income from continuing operations, (2) gain on the sales of discontinued business tions of discontinued business divisions. A. Only (1). B. Both (1) and (2). C. Both (1) and (3). D. All the (1), (2) and (3)