On January 1, 2020, Harold Hardware Company's allowance for uncollectible accounts had a credit balance of $6,000. Sales revenue for 2020 was $1,200,000, of which 80% was on credit. Historical data indicates that 3% of gross credit sales prove uncollectible. What should the balance in the allowance account for Harold be after the adjusting entry for uncollectible accounts is made?

	A.	$18,000 credit
	B.	$30,000 credit
	C.	$28,800 credit
	D.	None of the other alternatives are correct.
	E.	$18,000 debit

Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st Alberta declared and paid a $75,000 cash dividend. On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00.

What is the balance in the Investment in Alberta Enterprises account on Canada's books at December 31st assuming Canada follows ASPE and accounts for Alberta using the cost method?

	A.	$300,000
	B.	$267,500
	C.	None of the other alternatives are correct
	D.	$252,500
	E.	$260,000