Homework 7 and 8 1) A company has $60,000 in cash, $75,000 in short-term investments, $140,000 in net current receivables, and $145,000 in inventory. The total current liabilities of the firm are $395,000. The acid-test ratio of the company is 2) If the allowance method of accounting for doubtful receivables is used, what account is credited in the entry to write off a customer's account as uncollectible?

Homework 7 and 8 1) A company has $60,000 in cash, $75,000 in short-term investments, $140,000 in net current receivables, and $145,000 in inventory. The total current liabilities of the firm are $395,000. The acid-test ratio of the company is 2) If the allowance method of accounting for doubtful receivables is used, what account is credited in the entry to write off a customer's account as uncollectible