An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $5,459. If Allowance for Doubtful Accounts has a $1,290 credit balance, the adjustment to record the bad debt expense for the period will require a

a.debit to Bad Debt Expense for $4,169.

b.debit to Bad Debt Expense for $1,290.

c.credit to Allowance for Doubtful Accounts for $5,459.

d.debit to Bad Debt Expense for $5,459.

The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date	Blankets	Units	Cost
May 3	Purchase	26	$11
10	Sale	10
17	Purchase	27	$13
20	Sale	18
23	Sale	3
30	Purchase	40	$14

Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

a.$78

b.$176

c.$39

d.$202

During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $226,174 instead of the correct amount of $181,593. The effect on the balance sheet and income statement would be

a.assets overstated by $44,581; retained earnings understated by $44,581; and net income statement understated by $44,581

b.assets overstated by $44,581; retained earnings understated by $44,581; and no effect on the income statement

c.assets, retained earnings, and net income all overstated by $44,581

d.assets and retained earnings overstated by $44,581; and net income understated by $44,581