All of Roberts Company's sales are on a credit basis. The following information is available for 2015: 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:

Select one:

a. $14,050

b. $13,250

c. $13,050

d. $12,050

e. $11,050

2.

During 2014, Paul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: Paul uses the periodic inventory system. Prior to any adjustments for these errors and ignoring income taxes, Pauls retained earnings at January 1, 2014, would be:

Select one:

a. Correct

b. $15,000 understated

c. $75,000 overstated

d. $135,000 understated

e. $75,000 understated

Allowance for doubtful accounts at 1/1/15 Sales Sales returns Accounts written off as uncollectible $8,000 475,000 40,000 10,000 2012 2013 $60,000 understated $75,000 understated