On December 31, 2016, the end of Larry's Used Cars' first year of operations, the accounts receivable $53,600. The company that $1,200 of the year-end receivables will not be collected. Accounts receivable in the 2016 balance sheet will be valued at: $53,600. $54,800. $52,400. $1,200. Eve's Apples opened business on January 1, 2016, and paid for a two insurance policies effective that date. The liability policy was $36,000 for 18 months, and he crop damage policy was $12,000 for a two-year term. What is the balance in Eve's prepaid insurance as of December 31, 2016? When converting an income statement from a cash basis to an accrual basis, which of the following is incorrect? An adjustment for depreciation reduces net income. A decrease in salaries payable decreases net income. A reduction in prepaid expenses decreases net income. An increase in accrued payables decreases net income. Which of the following accounts has a normal debit balance? Accounts payable. Accrued taxes. Accumulated depreciation. Advertising expense. Call Farms reported supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies the Cal Farms purchased during the year? $1,600,000. $1,800,000