In 2019, Trevor Construction is in its first year of business. All of Trevors sales are made on account. The company has decided to account for uncollectible accounts using the percentage of revenue method under the Allowance method. Their estimate is 2% of total sales for the year. At the end of 2019, Trevor Construction has the following information relating to operations:

Accounts Receivable at 12/31/2019 $ 51,000

Total Sales Revenue for 2019 $ 212,000

Operating Expense $ 37,000

Loss on sale of Land $ 58,000

a. What amount of cash did Trevor collect from Sales in 2019?

	a.	$51,000
	b.	$157,780
	c.	$212,000
	d.	$161,000

b. Prepare the journal entry to account for the estimated Uncollectible Accounts Expense using the allowance method.

	a.	Dr. Uncollectible Expense $4,240 Cr. A/R $4,240
	b.	Dr. Uncollectible Expense $3,220 Cr. Allowance for Uncollectible Accounts $3,220
	c.	Dr. Uncollectible Expense $4,240 Cr. Cash $4,240
	d.	Dr. Uncollectible Expense $4,240 Cr. Allowance for Uncollectible Accounts $4,240

c.

What is the net realizable value of accounts receivable reported on the balance sheet after making the journal entry for estimated uncollectibles in #b?

	a.	$51,000
	b.	$161,000
	c.	$47,780
	d.	$46,760

d.

What is the journal entry if Trevor Construction determines that Commerford Co. will not pay its $2,000 bill and needs to write-off Commerfords account under the Allowance method?

	a.	Dr. Uncollectible Expense $2,000 Cr. Accounts Receivable $2,000
	b.	Dr. Allowance for Uncollectible Accounts $2,000 Cr. Accounts Receivable $2,000
	c.	Dr. Uncollectible Expense $2,000 Cr. Allowance for Uncollectible Accounts $2,000
	d.	Dr. Allowance for Uncollectible Accounts $2,000 Cr. Uncollectible Expense $2,000

e.

What is the journal entry if Trevor Construction determines that Commerford Co. will not pay its $2,000 bill and needs to write-off Commerfords account under the Direct Write Off method?

	a.	Dr. Allowance for Uncollectible Accounts $2,000 Cr. Uncollectible Expense $2,000
	b.	Dr. Uncollectible Expense $2,000 Cr. Accounts Receivable $2,000
	c.	Dr. Uncollectible Expense $2,000 Cr. Allowance for Uncollectible Accounts $2,000
	d.	Dr. Allowance for Uncollectible Accounts $2,000 Cr. Accounts Receivable $2,000