celvable $300,000 debit, and allowance for doubtful accounts $3,500 credit Becky estimates that 2% of its net sales will prove to be uncollectible. What is the amount of estimated bad debts expense? a. $12,000 b. $8,500 c. $15,000 d. $11,500 14. Wellington Corp. has outstanding gross accounts receivable of $2,500,000 as of December 31 and sales on credit during the year of $20 million. There is also a debit balance of $50,000 in the allowance for doubtful accounts. If the company estimates that 3% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? a. $ 75,000. b. 125,000. c. 25,000 d. $ 650,000 15. In preparing its October 31, 2018 bank reconciliation, Catt Co. has the following information available: $40,000 Balance per bank statement, 10/31/18 Deposit in transit, 10/31/18 Outstanding checks, 10/31/18 Note collected by bank in October on 10/31/18 12,500 9,200 4,260 After adjusting for reconciling items, the correct balance of cash on October 31, 2018 is a. $47,560 b. $42,500 c. $49,200 d. $43,300 16. The following balance were obtained from the bank statement and depositor's ledger for the month of November 2018 Balance per depositor's ledger Note collected by the bank but not recorded in the ledger Bank service charges appearing on the bank statement NSF check received from a customer $76,000 5,000 300 2,000 Payment check recorded wrongly in the ledger as $36,000 instead of th correct amount of $63,000 Deposits in transit 18,000 After adjusting for reconciling items, the correct cash balance for November 2018 a. $75,400 b. $46,700 C. $105,700 d. $51,700 Which of the following is not a time value of money concept? a. Present value of a lump sum. b. Future value of annuity