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 theanalysis of receivablesmethod. 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. Accounts Receivable $1,950

Dr. Bad Debt Expense $1,950

Cr. Allowance for Uncollectible Accounts $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 theanalysis 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:

$1,950

$2,000

$1,920

$2,030

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 theanalysis of receivablesmethod. What is "Accounts Receivable, gross" on its December 31st Balance Sheet?

Question 24 options:

$68,050

$68,000

$70,000

$67,970

Question 25(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 theanalysisof receivables method. What is "Accounts Receivable, net" on its December 31st Balance Sheet?

Question 25 options:

$68,050

$70,000

$67,970

$68,000

Question 26(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 theanalysis of receivables method. What is "Bad Debt Expense" on its Income Statement for the year ending December 31st?

Question 26 options:

$2,000

$1,920

$1,950

$2,030

Part 4: Notes Receivable

Question 27(Mandatory)(3 points)

a 60-day, 6 percent, $100,000 note to a customer, to replace the customer's $100,000 outstanding Accounts Receivable.

______________________________

Assuming the note remaining outstanding for all 60 days, what is thetotalinterest which will accrue over the life of this note?

Question 27 options:

$6,000

$500

$1,000

$1,500

Question 28(Mandatory)(3 points)

A company issues a 60-day, 6 percent, $100,000 note to a customer, to replace the customer's $100,000 outstanding Accounts Receivable.

______________________________

What is the maturity value of the note?

Question 28 options:

$101,500

$106,000

$100,000

$101,000