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Questions 11 - 13 are based on the following information: The bookkeeper of the Pragma Corp. has asked you to assist him with the preparation

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Questions 11 - 13 are based on the following information: The bookkeeper of the Pragma Corp. has asked you to assist him with the preparation of information about the company's accounts receivable for presentation in the financial statements at December 31, 2020, the end of the company's fiscal year. The following details were extracted from the company's files Debit Credit Accounts Receivable, January 1, 2020 $250,000 Allowance for Doubtful Accounts, January 1, 2020 $17.500 Total sales for 2020 are $650.000, of which $150,000 were cash sales and the remainder on account During 2020, the company collected $400,000 in cash from customers that purchased merchandise on account, and a total of $20,000 of accounts receivable was written off Pragma uses the aging of accounts receivable method to estimate the net amount of accounts receivable at year end. Assume that Pragma treats all of its accounts receivables as having the same age and it estimates that 6% of the ending balance of its accounts receivable may not be collected in the future. 11 or 38 The balance of Accounts Receivable at December 31, 2020 equals: Select one: O a $350,000 O b. $330,000 O c. 5480,000 O d. $80,000 12:38 of 38 The journal entry to record the write off of accounts receivable during the year 2020 should include Select one: O a. A credit to Accounts Receivable for $21,000, O b. A debit to Accounts Receivable for $20,000 O c. A credit to Accounts Receivable for $20,000. O d. A Debit to Allowance for Doubtful Accounts for $19,800. 130138 Assume that the balance of Accounts Receivable at December 31, 2020, is $400,000 regardless of your answer to question 11. The journal entry to record bad debt expense for the year 2020 should include Select one: a. A credit to Accounts Receivable for $26,500 O b. A credit to Allowance for Doubtful Accounts for $24,000 O c. A debit to Bad Debt Expense for 521,500 O d. A debit to Bad Debt Expense for $26,500 Oo. A debit to Bad Debt Expense for $20,000

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