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Cole Inc. had the following account balances at December 31, 2020: AR at 12/31/2020 for invoices issued in the last 30 days $50,000 AR at
Cole Inc. had the following account balances at December 31, 2020: AR at 12/31/2020 for invoices issued in the last 30 days $50,000 AR at 12/31/2020 for invoices issued more than 30 days before year-end $75,000 Allowance for uncollectible accounts at 12/31/2020 before recording end of year $1,000 adjustment Cash sales during 2020 $98,000 Credit sales during 2020 $421,000 When using the % of sales method the company estimates 1.50% of credit sales will be uncollectible. When using the balance sheet method (AR method) the company estimates that 3% of the AR for invoices issued in the last 30 days and 6% of the AR for invoices issued more than 30 days before year end will be uncollectible. What amount of bad debt expense should the company record for 2020 for each method? Multiple Choice $6,000 using % of sales method; $7,315 using AR aging method $6,315 using % of sales method; $7,000 using AR aging method Today, Thomas deposited $150,000 in a three-year, 4% CD that compounds quarterly. What is the maturity value of the CD? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) Multiple Choice $169,025. $168,000. $168,730. $165,225
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