Credit sales are recorded by crediting an account receivable for a specific customer. 1) True 2) False Question 25 (1 point) Listen Peter Corporation reported the following account balances for 2018. Peter has a January to December fiscal year: Accounts Receivable at Jan 1, 2018 (debit) S40,000 Allowance for Doubtful Accounts at Jan 1, 2018 $6,000 (credit) Total credit sales during 2018 $200,000 Total collections on accounts receivable during $180,000 2018 Uncollectible accounts written off during 2018 $10,000 Peter Corporation estimates that 2% of credit sales should be used to allow for bad debts. Assuming that Peter Corporation has a December 31 year-end, the adjusting entry at December 31, 2018 for doubtful accounts will be: 1) Bad Debt Expense Cr 4,000; Allowance for Doubtful Accounts Dt 4,000 2) Bad Debt Expense Dt 6,000: Allowance for Doubtful Accounts Cr 6,000 3) Bad Debt Expense Cr 10,000: Allowance for Doubtful Accounts Dr 10,000 4) Bad Debt Expense Dt 4,000; Allowance for Doubtful Accounts Cr 4,000 5) Bad Debt Expense Cr 4,000; Accounts Receivable Dr 4,000 Question 22 (1 point) Saved Listen Cash sales total $705 and the amount of cash in the register is $685. The shortage of $20 represents an expense. 1) True 2) False Question 23 (1 point) Listen In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be 1) Noted as a memo. O2) Deducted from the book balance of cash. 3) Added to the bank balance of cash. 4) Added to the book balance of cash. 5) Deducted from the bank balance of cash