QUESTION 5 Lewandowski Co.'s accounts receivable show the following balances by age: Age of Receivable 0-30 days 31-60 days 61-120 days More than 120 days Balance $600,000 175,000 70,000 10,000 Before the adjusting journal entry, the Allowance for Uncollectibles has a credit balance of $8,500. Lewandowski Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%, and more than 120 days, 65%. The adjusting journal entry: Reduces taxable income by $8,500 Reduces net realizable value of receivables by $20,500 Reduces taxable income by $20,500 Reduces net realizable value of receivables by $12,000 Fave and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air Reduces net realizable value of receivables by $12,000 QUESTION 6 Bale Company estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Bale's credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $750 on December 31, 2021? $5,820 $31,000 $31,180 $37,180 ve and Submit to save and submit. Click Save All Answers to save all answers. Sa MacBook Air QUESTION 7 Hazard Hardware began 2021 with a credit balance of $32,000 in the refund liability account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. Hazard estimates that 6% of all sales will be returned. During 2021, customers retumed merchandise for credit of $28,000 to their accounts. What is the balance in the refund liability account at the end of 2021? $11,000 $21,000 $39,000 $43,000 Eck Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ans MacBook Air 8oF 899 $ % 5 & 7 6 8