Recording the collection of a previously written off customer account under the allowance method will have what effect on the financial statements? Profit is unchanged and total assets decrease Profit decreases and total assets decrease Profit decreases and total assets is unchanged Profit is unchanged and total assets is unchanged At year end, the aged list of Accounts Receivable showed the following breakdown: 0 to 30 days, $159,000; 31 to 90 days, $150,000; and over 90 days, $53,000. You estimate the following percentages of receivables to be uncollectible: 5% of 0 to 30 days, 10% of 31 to 90 days, and 25% of over 90 days. If the unadjusted balance of Allowance for Doubtful Accounts is $2,500 credit, what is the bad debt expense for the year? $27,175 $31,500 $33,700 $30,825 Which of the following is a benefit of selling on credit? Cash is received sooner. Expenses are reduced by making sales to a wide range of customers. Revenues are increased by making sales to a wider range of customers. Some customers do not pay, creating an expense. Which one of the following statements is correct? Accounts receivable are valued on the balance sheet at the gross amount owed to the business by its customers at the end of the period When the percentage of sales method is used, the unadjusted balance for the allowance for doubtful accounts does not affect the bad debt expense recorded for a period Under the allowance method, you recognize bad debt expenses when account receivable are written off The percentage of receivables method provides the best matching of bad debt expense to the credit sales of a period Your company lent $165,000 to a customer on April 1. The customer signed a 7- month, 7% interest bearing note. The amount borrowed with accrued interest is due on November 1. Your company's fiscal year end is June 30. Interest calculations is based on months. How much interest revenue is recognized on June 30? $2,887.50 $3.850.00 $962.50 $4,950.00 $1.925.00