Q5

Gross Accounts Receivable is $15,000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $140,000. In the past, 1% of credit sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach?

		$2,400
		$1,700
		$1,400
		$1,100

Q6Which method uses an aging of Accounts Receivable to calculate the Bad Debts Expense?

		Income statement approach
		Aging the Accounts Receivable approach
		Balance sheet approach
		Direct write-off