Question Completion Status: QUESTION 11 The distinction between the direct write-off method and the allowance method is: The customers to which goods or services are provided. The year in which cash is collected from customers. The cumulative amount of bad debt expense reported across years. The amount of bad debt expense reported in each year. QUESTION 12 Shupe Inc. estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible ac on the accounting equation? Decrease assets and decrease liabilities Increase liabilities and decrease stockholders' equity Decrease assets and decrease stockholders' equity Increase assets and decrease stockholders' equity QUESTION 13 On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, 1/30. The customer made the correct on December 5. How would Flores record the collection of cash on December 57 A 7,840 B 7,840 Cash Accounts Receivable Cash Sales Discounts Accounts Receivable Cash Sales Revenue 7,840 160 8,000 7,8401 1601 Click Save and Submit to save and submit. Click Save All Are to reall answers Question Completion Status: QUESTION 13 On November 10 of the current year, Flores Mills provides services to a customer for 58,000 with credit terms 2/10, 1/30. The customer made the correct payment on December 5. How would Flores record the collection of cash on December 57 A 7,840 B 7,840 7,840 160 8,000 C 7,840 160 Cash Accounts Receivable Cash Sales Discounts Accounts Receivable Cash Sales Revenue Accounts Receivable Cash Accounts Receivable Option A Option B Option Option D 8,000 D. 8,000 8,000 QUESTION 14 A company accounts for possible bad debts using the allowance method. When an actual bad debt occurs what effect does it have on the accounting equation? Increases assets and increases stockholders' equity Decreases assets and decreases liabilities. Decreases assets and decreases stockholders' equity. No effect on the accounting equation Sw All Click Save and Submit to save and submit. Click Save All Answers to sow all ansar Question Completion Status: QUESTION 15 On December 31, 2021, Andy Inc. has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts Age Group Accounts Estimated Percent (days past due) Receivable Uncollectible 0-30 5% 0 31-60 0 10% 61-90 0 204 What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2021 using the aging method? $1,500. $5,000 $6,500 $8,000 $50.00 $20,00 $10.00 QUESTION 16 Credit sales are recorded as Debit Service Revenue, credit Accounts Receivable. Debit Accounts Receivable, credit Service Revenue, Debit Cash, credit Service Revenue. Debit Cash, credit Deferred Revenue. 0.000 Save ALI Click Save and Submit to save and submit. Click Save All Answers to save all costers
