Question 15 (2 points) A trial balance shows the following balances: Accounts Receivable $90,000 dr. Allowance for Bad Debts 730 cr. Sales $400,000 cr. Sales Returns and Allowances $8,000 dr. If company is thinking of estimating bad debts either using 5% of Gross Receivables OR 1% of Net Sales. What would the amounts in the Bad Debts Adjusting Entry be under these alternatives? Under % of Gross Receivables approach the Bad Debt Expense in the entry would be $4500 and 3270 for the % of Sales approach. Under the % of Gross Receivables approach the Bad Debt Expense in the entry would be $ $3770 and $3920 for % of Net Sales method. Under the % of Gross Receivables approach the Bad Debt Expense in the entry would be $ $3770 and $3190 for the other method. Under the % of Gross Receivables approach the Bad Debt Expense in the entry would be $ 3733.50 and $3920 for the other method. Question 16 (2.5 points) Which of the following should be included in a company's inventory at the balance 21 Which of the following should be included in a company's inventory at the balance sheet date? 24 Goods in transit to the company that are being purchased FOB destination Goods received from another company to sell on a consignment basis 27 Our own goods consigned to another company and held at the other company's warehouse 30 Goods in transit sold TO another company with terms of FOB Shipping Point 33 Question 17 (2.5 points) In a bank reconciliation, NSF checks should be 36 Should be subtracted from the bank side 39 Should be subtracted from the book side 42 Should be added to the bank side Should be subtracted from the bank side Do not appear on the bank reconciliation