8. The Clark Company fails to record these two adjusting journal entries on 12/31/05: Depreciation on Equipment: $40 Cash Dividends declared: $10 1. 2. Working capital will be a Correct b) $10 overstated c) $10 understated d) $50 overstated e) $50 understated 11.ABC Products completed a sale on January 1 for $5,500 and completed two additional sales on January 9 and 10 for $3,000 and $1,500, respectively. ABC's credit terms are 2/10, n/20. The payment on the $5,500 sale was received January 20. The $1,500 sale was paid for on January 15, and the $3,000 sale was paid for on January 12. ABC uses the"Gross method' to record sales. What is the effect of the three transactions on the January Gross Profit and Net Income? a) Gross Profit $9,690, Net Income $9,690 b) Gross Profit $9,800, Net Income $9,800 c) Gross Profit $9,800, Net Income $9,910 d) Gross Profit $9,910, Net Income $9,910 e) Gross Profit $9,690, Net Income $9,800 All of Roberts Company's sales are on a credit basis. The following information is available for 2015: $ 9,000 475,000 40,000 10,000 Allowance for doubtful accounts, 1/1/15 Sales Sales returns Accounts written off as uncollectible 1) Roberts provides for doubtful accounts expense at the rate of 3% of net sales. Following adjusting entries at December 31, 2015, the allowance for doubtful accounts balance will be: a) $14,050 b) $13,250 c) $13,050 d) $12,050 e) $11,050 2) After adjustment at December 31, 2015 ,the allowance for doubtful accounts balance will be