7. As of January 1, 2013, Farley Co. had a credit balance of 5520.000 in its allowance for uncollectible accounts Based on experience, 29% of Farley's Accounts Receivable has been collectible. During 2013, Farley wrote on $630,000 of accounts receivable. Account Receivable for 2013 were SIR.000.000. In its December 31, 2015, balance sheet, what amount should Farley report as allowance for uncollectible accounts: $230,000 B. $360,000 C. S130,000 D. 5880,000 8. Perez Computers Inc. sold $20,000 of computers on July 1 to Robertson Company with terms 3/15, 1/60. Perez uses the net method to record cash discounts. The journal entry on July 1 includes a A. Debit to Accounts Receivable for $19,400 B Debit to Sales for $20,000 C. Credit to Inventory for $20,000. D. Debit to Accounts Receivable for $20,000 9. Mountain High Ice Cream Company transferred $60.000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount less a 2% fee (2% of the total factored amount). The journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met includes: A. A credit to Loss on Sale of Accounts Receivable of $1,200. B. A credit to Recourse Liability of $1,200. C. A credit to Accounts Receivable of $60,000. A debit to Cash of $60,000. D 10. Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2013. The note, along with interest at 6%, is due on June 30, 2014. On September 30, 2013, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank? A. S42,400 B. $40,600 (C. $39,220 D. 538,160 11. In a periodic inventory system, recording a sale on credit involves which of the following entry (entries? A Debit Accounts Receivable and Credit Sales; Debit Cost of Goods Sold and Credit Inventory. B. Debit Accounts Receivable and Credit Sales. C. Debit Cost of Goods Sold and Credit Inventory D. Debit Account Receivable and Credit Inventory. 12. The accounts receivable turnover rate: A. Indicates how many times the receivables were converted into cash during the year. B. Is computed by dividing average receivables by sales. C. Indicates the average number of days a business waits to make collection on a credit sale. D. Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm 13. In a period when costs are declining and inventory quantities are stable, the inventory method that would result in the highest ending inventory is: A. Weighted average. B. Moving average C. FIFO D. LIFO