Question Completion Status: Sky Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600,000 and credit sales are $2,700,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Sky Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment? O a. Bad Debt Expense Allowance for Doubtful Accounts 19,000 19,000 Ob. Bad Debt Expenso Accounts Receivable 19.000 19,000 OC Bad Debt Expense Accounts Receivable 24,000 24,000 Od. Bad Debt Expenso 24,000 Click Save and Submit to save and submit. Click Save All Answers to save all ans Save All we QUESTION 3 ABC company just started in business. ABC purchased three merchandise inventory items at the following prices: first purchase $64; second purchase 576; and third purchase $68. If the company sold two units for a total of $200 and used FIFO costing, the gross profit for the period would be O a. $68 O b. $60. O c. $56. O d. $62. QUESTION 4 Inventory is O a.generally valued at the price for which the goods can be sold. O b. often reported as a miscellaneous expense on the income statement. O c. reported as a current asset on the balance sheet. O d.reported under the classification of Property, Plant, and Equipment on the balance sheet QUESTION 5 A Sales Returns and Allowances account should not be debited if a customer O a. returns defective merchandise. O b.returns goods that are not in accordance with specifications. O c. receives a credit for merchandise of inferior quality O d. utilizes a prompt payment incentive. QUESTION 6 An example of poor internal control is: O a. A salesperson makes the sale, and a different person ships the goods. O b. The custodian of an asset should not maintain or have access to the accounting records. Oc. The accountant should not have physical custody of the asset nor access to it O d. One person should be responsible for handling related transactions. QUESTION 7 10 p At May 1, 2022, Kaycee Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows: 800 units at $7 600 units at $8 The company sold 1,000 units during the month for $12 per unit. Kaycee uses the average cost method. The weighted average cost per unit for May is O a $7.500 O b. $7.375 O $8.000 Od $7.000. QUESTION 8 When a seller grants credit for returned goods, the account that is credited is O a. Sales Revenue. O b. Sales Returns and Allowances. O c. Inventory O d. Accounts Receivable