D Question 12 2 pts The following information applies to the questions displayed below.) On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550, Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. Which of the following describes the effects of Kincaid's entry to recognize the write-off of the uncollectible accounts? Does not affect assets or stockholders' equity. Decrease assets and stockholders' equity. Increase assets and stockholders' equity. Increase assets and decrease stockholders' equity. Previous Next Question 13 How is the accounts receivable turnover ratio computed? 365 days + Net accounts receivable Cost of goods sold + Inventory Net accounts receivable + Sales Sales + Net accounts receivable Question 19 2 pts How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of the financial statements? Increase total liabilities and increase stockholders' equity. Decrease total assets and decrease stockholders' equity, Decrease total liabilities and increase stockholders' equity. Increase total assets and decrease stockholders' equity. Question 20 2 pts The accounting records of the Harris and Schubert Companies contained the following account balances: Sales Harris $300,000 Schubert 180,000 Which of the following statements is true? Accounts receivable $60,000 40,000 The average number of days to collect accounts receivable for Harris is 73 days. The accounts receivable for Schubert Company turns over 6 times each year. The company with the higher accounts receivable turnover ratio will also have the longer average number of days to collect accounts receivable. Schubert Company has a lower likelihood of lost income resulting from credit costs. Question 21 2 pts How is the average number of days to collect accounts receivable computed? CO Sales + Net accounts receivable Accounts Receivable + 365 Accounts Receivable + Net income 365+ Accounts receivable turnover ratio