9. (4 points) The advantage of relating a company's bad debt expense to its outstanding accounts receivable is that this approach A) best relates bad debt expense to the period of sale B) is the only generally accepted method for valuing accounts receivable. C) makes estimates of uncollectible accounts unnecessary. D) gives a reasonably correct statement of receivables in the balance sheet. (46) 10. (4 points) Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles? (AC 2 and 11) A) To match the costs of production with revenues as earned B) To reduce the federal income tax liability. C) To adhere to the accounting constraint of conservatism D) To aid management in cash-flow analysis 11. (4 points) At the close of its first year of operations, December 31, 2007, Linn Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2007, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 31, 2007, as accounts receivable before the allowance for doubtful accounts? (A 7 and AC 8) A) $670,000 B) $590,000 C) $490,000 D) $440,000