QUESTION 6 What type of account is petty cash and what is its normal balance? expense, debit asset, debit expense, credit revenue, credit QUESTION 8 2% of sales is estimated to be uncollectable. Sales are $50,000. Accounts receivable are $40,000. Cost of Goods Sold is $30,000 Which is correct? O Bad debt expense is $1000 Bad debt expense is $800 Bad debt expense is $400 O None of the above QUESTION 10 What words can be used to describe the Allowance for Doubtful Accounts? O Contra account and credit account O Asset Account with a normal debit balance O None of the above O Conta asset account with a normal debit balance QUESTION 12 Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a O a.credit to Cash b. credit to Bad Debt Expense C. debit to Allowance for Doubtful Accounts d. debit to Accounts Receivable, James QUESTION 13 Some years Mario uses his machine a few hours a year and sometimes he uses it thousands of hours a year. What depreciation method should he use? Straight line Units of Production (Output) O Double Declining Balance Triple declining balance QUESTION 14 A S 400 petty cash fund has$ 1 0 0 in cash remaining and receipts of $1 80. When John replenishes the fund, the journal entry will include: O a. credit to petty cash of $300 Ob a credit to cash of $300 c. a $120 credit to cash short and over O d. A $20 debit to cash short and over QUESTION 16 What method do we use to deduct the expense of equipment? O Depletion Depreciation Amortization O Units of Production QUESTION 17 What method do we use to,deduct the expense of a natural asset? Depreciation amortization depletion Units of Production