Music Corporation The data below is for Music Corporation for 2016. Accounts receivableJanuary 1, 2016

$236,000

Credit sales during 2016

820,000

Collections from credit customers during 2016

590,000

Customer accounts written off as uncollectible during 2016

8,000

Allowance for doubtful accountsJanuary 1, 2016

8,700

Estimated uncollectible accounts based on an aging analysis

9,600

1. Refer to the data for Music Corporation. What is the balance of Accounts Receivable at December 31, 2016? a. $336,000 b. $448,400 c. $458,000 d. $466,000

2. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000 b. $8,100 c. $8,700 d. $8,900

3. Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what is the balance in the Allowance for Doubtful Accounts after the bad debt expense adjustment? a. $8,000 b. $8,100 c. $8,900 d. $9,600

4. Router Inc. lends $70,000 on a 120-day, 9% promissory note. The total interest that Router will receive at maturity is a. $6,300 b. $2,100 c. $525 d. $1,890

5. Textbooks.com accepts VISA for payments of purchases made by students. The credit card drafts are deposited directly in a bank account. VISA charges a 2% collection fee. Credit card drafts totaling $12,000 are deposited during September. The effect on the accounting equation to record the sales and deposits will include a. An increase in Cash for $12,000 b. An increase to Sales for $11,760 c. An increase to Accounts Receivable for $11,760 d. An increase in Collection Fee Expense for $240