On December 31, the Accounts Receivable ending balance is $80,000. Assume that the unadjusted balance of Allowance for Uncollectible Accounts is a debit of $500 and that the company estimates 7% of the accounts receivable will not be collected. The amount of bad debt expense recorded on December 31 will be:

$5,000.

$5,100.

$5,600.

$6,100.

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A company has the following aging schedule of its accounts receivable with the estimated percent uncollectible:

Age Group		Amount Receivable				Estimated Percent Uncollectible
Not yet due		$	175,000				4	%
0-60 days past due		$	40,000				10	%
61-120 days past due		$	10,000				30	%
More than 120 days past due		$	5,000				60	%

Assuming the balance of Allowance for Uncollectible Accounts is $3,000 (credit) before adjustment, which of the following would be recorded in the year-end adjusting entry?

Credit Allowance for Uncollectible Accounts for $20,000.

Debit Allowance for Uncollectible Accounts for $14,000.

Debit Bad Debt Expense for $14,000.

Credit Allowance for Uncollectible Accounts for $17,000.

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On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due on March 31, 20X2 (one year later). On March 31, 20X2, Nelson Inc. will record interest revenue of:

$8,000.

$6,000.

$2,000.

$0.

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Under the direct write-off method, uncollectible accounts are recorded:

In the period the account is estimated to be uncollectible.

In the period the account is determined actually uncollectible.

In the period following the account being actually uncollectible.

Never.

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The amount of cash owed to the company by its customers from the sale of products or services on account is known as:

Retained Earnings.

Accounts Receivable.

Accounts Payable.

Service Revenue.