Question 23 2.5 pts

Gross Accounts Receivable is $20,000. Allowance for Doubtful Accounts has a credit balance of $400. Net credit sales for the year are $125,000. In the past, 2% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,500 is doubtful. Under the income statement approach, Bad Debts Expense for the year is:

$2,900

$1,100.

$2,500.

$1,900.

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Question 24 2.5 pts

Gross Accounts Receivable is $20,000. Allowance for Doubtful Accounts has a credit balance of $400. Net credit sales for the year are $125,000. In the past, 2% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,500 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:

$2,500.

$1,100.

$1,900.

$2,900.

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Question 25 2.5 pts

Cost of Goods Sold includes:

Freight-out.

Net Sales.

Freight-in.

Supplies Expense.

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Question 26 2.5 pts

How is Income Summary closed if the company had a net loss?

Debit Withdrawals; credit Capital

Credit Income Summary; debit Capital

Debit Income Summary; credit Capital

Debit Capital; credit Revenue