ABC Company has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made. The company estimates that $60,000 of its receivables are uncollectable at the end of the period. The adjusting journal entry that would be recorded for bad debts expense at the end of the period would be: . Bad Debt Expense $60,000 Allowance for Doubtful Accounts $60,000 b. Bad Debt Expense $65,000 Allowance for Doubtful Accounts $65,000 O C. Bad Debt Expense $55,000 Allowance for Doubtful Accounts $55,000 d. Bad Debt Expense $55,000 Accounts Recievable $55,000 ABC Company accepts a three month, 6%, $2,000, promissary note as settlement of DEF Company's account on Dec 16. The entry to record this transaction on ABC's books on Dec. 16 is: a. Notes Receivable $2,030 Accounts receivable $2,000 Interest Revenue $ 30 O b. Notes Receivable $2,000 Cash $2,000 O c. Notes Receivable $2,000 Accounts receivable $2,000 O d. Notes Receivable $2,120 Accounts receivable $2,000 Interest Revenue $ 120 ABC Company had cheques outstanding totaling $5,400 on its May bank reconciliation. In June ABC Company issued cheques totaling $38,900. The June bank statement shows that $26,300 in cheques have cleared the bank in June. What is the amount of outstanding cheques on ABC Company's June bank reconciliation? O a $5,400 O b. $12,600 O c. $7,200 O d. $18,000 ABC Company uses a perpetual inventory system and has the following inventory transactions: Units Unit Costs Total Costs March 1 10,000 $9 $90,000 Beginning Inventory March 9 Purchases 12,000 $10 $120,000 March 12 Sales (20,000) March 18 Purchases 7,000 $11 $77,000 O a. $192,000 O b. $190,000 O c. $95,000 O d. $97,000 Which of the following situations would be the most likely indicator that ABC Company might have a Solvency problem? O a. Increasing debt to total assets and decreasing times interest earned ratios. O b. Decreasing debt to total assets and increasing times interest earned ratios. O C. Decreasing debt to total assets and Decreasing times interest earned ratios. O d. Increasing debt to total assets and increasing times interest earned ratios. Clear my choice ABC Company sold some of its used equipment for $10,000 cash. At the time of disposal the equipment had a cost of $45,000 and accumulated depreciation of $30,000. ABC Company should record a: O a. $5,000 loss on disposal O b. $5,000 gain on disposal . $15,000 loss on disposal O d. $15,000 gain on disposal Which of the following does NOT indicate a company's profitability? a. Current Ratio O b. Earnings per share O c. Profit O d. Price-Earnings ratio Which account of the following accounts will have a zero balance after closing entries have been journalized and posted? a. Accumulated Depreciation ob O b. Unearned Revenue O c. Supplies O d. Service Revenue