7-11 plz

2 _7. If a company fails to record estimated bad debts expense, a. cash realizable value is understated. b. expenses are understated. c. revenues are understated. d. receivables are understated. 8 When an account becomes uncollectible and must be written off a. Allowance for Doubtful Accounts should be credited. b. Accounts Receivable should be credited. C. Bad Debt Expense should be credited. d. Sales Revenue should be debited. 9. A low accounts receivable turnover ratio indicates a the company's sales are increasing. b. a large proportion of the company's sales are on credit. c. customers are making payments quickly. d. customers are making payments slowly. 10. Gipson Furniture factors $500,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors. What journal entry does Gipson make when factoring these receivables? a. Cash 485,000 Loss on Sale of Receivables 15,000 Accounts Receivable 500,000 b. Cash 485,000 Accounts Receivable 485,000 C. Cash 500,000 Accounts Receivable 485,000 Gain on Sale of Receivables 15,000 d. Cash 485,000 Service Charge Expense 15,000 Accounts Receivable 500,000 11 Research and development costs a. are classified as intangible assets. b. must be expensed when incurred under generally accepted accounting principles c. should be included in the cost of the patent they relate to. d. are capitalized and then amortized over a period not to exceed 20 years