9. At the end of the accounting period, December 31, 2020, ABC Company had a bad debt allowance account with a debit balance of $100, before adjustments. As of December 31, an aging analysis of accounts receivable indicated that $2,300 would be uncollectible. In addition, management estimates that 4% of credit sales will be uncollectible. Credit sales during 2020 were $70,000. What is the amount of bad debt expense the company reported for 2020 if the statement of income and expense (% of sales) approach was used to determine the allowance balance? Select one:

a. $2,400

b. $2,700

c. $2,900

d. $2,800

10.Which of the following is an advantage of the net billing method over the gross billing method for recording credit sales?

Select one:

a. All accounts receivable are collected on time (within the discount period).

b. The net billing method is simpler because everything related to discounts is ignored.

c. Do not overestimate accounts receivable.

d. Accumulate in a Sales Discounts account, the discounts taken by customers.

13.

Select the alternative that best indicates the NET EFFECT of the following two transactions on the accounting equation in the Seller's books. The seller records sales using the gross billing method. A customer paid a $500 bill within the discount period. The terms of the bill were 2/10, n/30.

Select one:

a. assets = debts + capital

+$10 0. +$10

b. assets = debts + capital

-$10. 0. -$10

c. assets = debts + capital

0. 0. 0

14. Use the following information to determine ABC's correct cash balance as of December 31 Balance according to the depositor $ 91,880 Check returned by bank $640 Deposits in transit $4,600 Checks from a customer for $900 were recorded as an increase of $1,080 Check written for $158 was recorded as a reduction of $194 Select one:

a. $91,456

b. $91,096

c. $95,696

d. $91,024