List the following questions by number and select the best answer for each question. Choose only one answer for each question. 1. A method of estimating bad debts expense that involves a detailed examination of assets and their depreciation rates is the: A. Direct write-off method. B. Aging of accounts receivable method. C. Percentage of sales method. D. Percent of accounts receivable method. E. None of the Above 2. An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected is the: A. Cash Basis Method of accounting for bad debts. B. Aging of notes receivable. C. Adjustment method for uncollectible debts. D. Direct write-off method of accounting for bad debts. E. Allow method of accounting for bad debts. 3. On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; Allowance for Doubtful Accounts, debit balance of $951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible? A. $ 951. B. $3,992. C. $4,884. D. $5,835. E. $6,786. 4. A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $175. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? A. Bad Debt Expense 15,750 Allowance for Doubtful Accounts 15,750 A. Bad Debt Expense 15,575 Allowance for Doubtful Accounts 15,575 A. Bad Debt Expense 15,925 Allowance for Doubtful Accounts 15,925 A. Accounts Receivable 15,750 Bad Debt Expense 175 Sales 15,925 A. Accounts Receivable 15,925 Allowance for Doubtful Accounts 15,925 5. A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts Receivable $ 355,000 Debit Allowance for Uncollectible Accounts 500 Credit Net Sales 800,000 Credit All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What will be the balance in the Allowance for uncollectible accounts at year-end, after the adjusting entry is prepared? A. $1,275 B. $1,775 C. $5,300 D. $4,800 E. $5,500 6. A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current credit balance (before adjustments) in the allowance for doubtful accounts is $800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: A. $4,600 B. $5,400 C. $6,200 D. $6,800