Question 35 2.5 pts

Which of the following could appear in an adjusting entry, closing entry, and reversing entry?

Cash

Depreciation Expense, Buildings

Withdrawals

Salary Expense

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Question 36 2.5 pts

Jody Sport and Hobby's Allowance for Doubtful Accounts had an unadjusted credit balance of $600. The manager estimates that $700 of the Accounts Receivable is uncollectible. Using the balance sheet approach, the year-end adjusting entry for Bad Debts Expense:

includes a debit to the Bad Debt Expense account for $100.

includes a debit to the Bad Debts Expense account for $700.

includes a credit to the Bad Debts Expense account for $100.

includes a credit to the Bad Debts Expense account for $1,300.

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Question 37 2.5 pts

The adjustment for bad debts using the percentage of receivables ignored the debit balance in the Allowance account. This error would cause:

None of these is correct.

total liabilities to be understated.

total assets to be overstated.

net income to be understated.

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Question 38 2.5 pts

The adjustment for bad debts using the percentage of receivables ignored the credit balance in the Allowance account. This error would cause:

net income to be understated.

total liabilities to be understated.

total assets to be overstated.

None of these is correct.