MULTIPLE CHOICE PLEASE CIRCLE YOUR ANSWER. DO NOT WRITE YOUR ANSWER IN THE MARGIN 1. On January 1, 2015, the Accounts Receivable of Linda Company had a debit balance of $150,000. During Januar the company provided services for $600,000 on account. The company collected $230,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January? A $750,000 debit $520,000 debit $180,000 C. 5600.000 debit & 600,000 4230,000 D. $600,000 credit E5370.000 debit 520,000 Connecticut Trees Inc. uses the allowance method to account for uncollectibles. The company's Accounts Receivable balance at December 31, 2017 was $14,000. The balance of Allowance for Bad Debts at December 31. 2017 was a credit balance of $ 800. During 2017, the company's net credit sales totaled $450.000. Based on prior experience, the company expects that bad debts will be of credit sales. The adjusting entry to record Connecticut Trees bad debt expense on December 31, 2017 using the percent-of-sales method will include which of the following: Allowana for Bad De A Debit to bad debt expense of $4,500 $4500 - Sac Debt Espe Debit to bad debt expense of $3.700 5800 C. Debit to bad debt expense of $ 600 D. Debit to bad debt expense of $1,400 E. None of the above # Shultek's Furniture Fabricators purchased land, paying $80,000 cash and signing a $220.000 note payable. In addition, Delta paid delinquent property tax of $3.000 title insurance cost $1.000 and $4,000 to level the land and remove an unwanted building. The journal entry for purchase of the land will include which of the following A Debit to Land Improvements $4.000 debit land $100.000 (6) Debit to Land for $100,000 Credit Cash $800,000 Debit to Land for S308.000 D. Debit to Tax Expense $3,000 E Bath B and C 4. B&B Foods Inc. owns 75% of the voting stock of Jolly Jams. How will B&B record its investment? A Amortized cost B Net value C. Consolidation method D. Fair value 5. Debt investments classified as held to maturity are reported at Amortized cost B Net value C. Consolidation method D. Fair value 6. Smurfs & Toads Inc. purchased S10.000 short-term bonds with excess cash. The bonds pay interest at 3%. The journal entry to record the purchase will include which of the following: Debit to Bond Investments $10,000 B Credit to Bond Investments S10,000 C Debit to Bond Investments $10,300 Debit to Cash S10,000 None of the above