On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method of accounting for uncollectible accounts. In February of Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4. Year 2, this customer paid Loudoun the $1050 Which of the following answers correctly states the effect of the December 31, Year 1 adjusting entry for uncollectible accounts on the financial statements of the Loudon Corporation? Balance Sheet Income Statement Net Ir A. B. Assets (3,375) (3,375) 3,375 n/a Liabilities 3,375 n/a n/a n/a Stockholders Equity n/a (3,375) 3,375 n/a Revenue n/a n/a n/a Expense n/a 3,375 (3,375) n/a (3) D. n/a Multiple Choice Option A A On December 31 Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible Loudoun uses the allowance method of accounting for uncollectible accounts. In February of Year 2. one of Loudoun's customers failed to pay his $1,050 account and the account was written off On April 4 Year 2, this customer paid Loudoun the $1,050. Which of the following answers correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? Balance Sheet Income Statement Stat: A Assets 1,050 (1,65e) 1.050 1,050 1,050 (1,050) Liabilities + n/a n/a n/a n/a Stockholders Equity n/a 1,050 1,050 n/a Revenue n/a 1,050 n/a n/a Expense in/a n/a (1,858) n/a Net Income n/a 1,050 1,050 n/a 1,05 1,0 1,05 0. Multiple Choice Option Which of the following is not subject to depreciation? Multiple Choice Computers Building Land . 1 Office furniture search O2 7.40 11/14 A machine with a book value of $38,000 is sold for $32,000 cash Which of the following answers would accurately represent the effects of the sale on the financial statements? Income Statement Assets A. 38,000 B. (6,000) C. (6,000) D. (6,800 Balance Sheet Stockholders Liabilities Equity n/a + 38,000 no (6,000) n/o . (6.000) - (6,000) Ravenue/Gain Expense/Lass= 38,000 nda n/a 6,000 n/a 6,000 n/a 5,000 Net Income 38,000 (6,000) (6,000) (6,000) Statement of Cash Flow 38.000 T/A 6,000 OA 6,000 IA 32.000 TA Multiple Choice Option A Options