Intermediate accounting

23) Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit totaling $6.5 during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount expense recognized for the year? the of bad debt a) 532,000. b) 1,920,000. c) 520,000 d) 508,000 24) Wellington Corp.has outstanding accounts receivable totaling $1.27 million as of December 31 and sales on credit during the year of $6.4 million. There is also a debit balance of $3,000 in the allowance for doubtful accounts. If the company estimates that 1% of its net credit sales wil be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? 12,700. b) 15,700 61,000 d) 67,000 a) 25) A Cash Over and Short account a) is a contra account to Cash. b) is not generally accepted c) is debited when the petty cash fund proves out over d) is debited when the petty cash fund proves out short 26) What is consigned inventory? a) Goods that are shipped, but title remains with the shipper b) Goods that have been segregated for shipment to a customer e) Goods that are sold, but payment is not required until the goods are sold. ) Goods that are shipped, but title transfers to the receiver Page