Question 21 (Mandatory) (3 points)

The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.

Credit sales for the year were $65,000. In the past, 3% of net credit sales have proved uncollectible.

An aging of Computer Co.s Accounts Receivable results in a $2,000 estimate for the Allowance for Doubtful Accounts. There were no write-offs during the year.

______________________________

Assume Computer Co. uses the percent of sales method. What is Bad Debt Expense on its Income Statement for the year ending December 31st?

Question 21 options:

	$1,950
	$2,030
	$1,920
	$2,000

Question 22 (Mandatory) (3 points)

The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.

Credit sales for the year were $65,000. In the past, 3% of net credit sales have proved uncollectible.

An aging of Computer Co.s Accounts Receivable results in a $2,000 estimate for the Allowance for Doubtful Accounts. There were no write-offs during the year.

______________________________

Assume Computer Co. uses the analysis of receivables method. Please provide the adjusting entry the Company would record to recognize Bad Debt Expense:

Question 22 options:

	Dr. Allowance for Uncollectible Accounts $1,950 Cr. Bad Debt Expense $1,950
	Dr. Bad Debt Expense $1,920 Cr. Allowance for Uncollectible Accounts $1,920
	Dr. Bad Debt Expense $1,950 Cr. Allowance for Uncollectible Accounts $1,950
	Dr. Bad Debt Expense $1,950 Cr. Accounts Receivable $1,950

Question 23 (Mandatory) (3 points)

The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.

Credit sales for the year were $65,000. In the past, 3% of net credit sales have proved uncollectible.

An aging of Computer Co.s Accounts Receivable results in a $2,000 estimate for the Allowance for Doubtful Accounts. There were no write-offs during the year.

______________________________

Assume Computer Co. uses the analysis of receivables method. What is the balance in the Allowance for Doubtful Accounts after Computer Co. records its adjustment entry relating to Bad Debt Expense?

Question 23 options:

	$1,920
	$1,950
	$2,030
	$2,000

Question 24 (Mandatory) (3 points)

The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.

Credit sales for the year were $65,000. In the past, 3% of net credit sales have proved uncollectible.

An aging of Computer Co.s Accounts Receivable results in a $2,000 estimate for the Allowance for Doubtful Accounts. There were no write-offs during the year.

______________________________

Assume Computer Co. uses the analysis of receivables method. What is Accounts Receivable, gross on its December 31st Balance Sheet?

Question 24 options:

	$68,000
	$68,050
	$70,000
	$67,970