receivables" refers to me amunts due from indlividuals or companies b. merchandise to be collected from individuals or companies c cash to be paid to creditors cash to be paid to debtors. d 18. On January 15, Nifty Company sells merchandise on account to Martinez Associates for $5,000 with terms 3/10, n/30. On January 20, Martinez retuns merchandise w $1,000 to Nifty. On January 24, payment is received from Martinez for the balance What is the amount of cash received? a. $4,000 b. $3,880 c $3,850 d $2,800 16. The Allowance for Doubtful Accounts is necessary because a when recording uncollectible accounts expense, it is not possible to know specific accounts will not pay b. uncollectibl e accounts that are written off must be accumulated in a separate c. a liability results when a credit sale is made. d. management needs to accumulate all the credit losses over the years. 17. Under the allowance method, Bad Debt Expense is recorded a. when an individual account is written off. b. when the loss amount is known. c. for an amount that the company estimates it will not collect. d. several times during the accounting period. 18. If the amount of uncollectible account expense is understated at year end a. net income wil be understated b. stockholders' equity will be understated. c. Allowance for Doubtful accounts will be overstated. d. net Accounts Receivable will be overstated. 19. When an account becomes uncollectible and must be written off a. Allowance for Doubtful Accounts should be credited. b. Accounts Receivable should be credited. c. Bad Debt Expense should be credited d. Sales Revenue should be debited 20. An aging of a company's accounts receivable indicates that $9,000 are estimated to b uncollectible. If Allowance for Doubtful Accounts has a $3,200 credit balance, th adjustment to record bad debts for the period will require a a. debit to Bad Debt Expense for $9,000 b. debit to Allowance for Doubtful Accounts for $5,800 c. debit to Bad Debt Expense for $5,800 d. credit to Allowance for Doubtful Accounts for $9,000