Amaud Company estimates that this years bad debts expense will be $7,500. When Amaud makes the adjusting entry the effect will be:

Select one:

a.

Bad debts expense: No affect; Allowance for doubtful debts: Increase; Accounts receivable: Decrease

b.

Bad debts expense: No affect; Allowance for doubtful debts: Decrease; Accounts

receivable: No affect

c.

Bad debts expense: Increase; Allowance for doubtful debts: Increase; Accounts receivable: Decrease

d.

Bad debts expense: Increase; Allowance for doubtful debts: Increase; Accounts receivable: No affect

e.

None of the above

2.

Given the following information, determine the adjusted cash balance per books from the following information:

1. Balance per books as of 30 June, $7,600.

2. Outstanding cheques, $600.

3. NSF cheque returned with bank statement, $120.

4. Deposit mailed the afternoon of 30 June, $300.

5. Cheque printing charges, $15.

6. Interest earned on cheque account, $40.

Select one:

a.

$7,480

b.

$7,600

c.

$7,585

d.

$7,505

e.

$7,640