Se financial statements of Georgi Manufacturing Company report net sales of So05,000 and accounts receivable of $80.000 and $60,000 at the beginning and end of the year, respectively. What is the average collection period for accounts 19. receivable in days? a. 36.9 days b. 84.9 days C. 42.9 days d. 49.3 days When an account is written off using the allowance method, the 20. a. cash realizable value of total accounts receivable will increase. b. cash realizable value of total accounts receivable will decrease. c. allowance account will increase. d. cash realizable value of total accounts receivable will stay the same. CHAPTER 10 QUESTIONS 21. Gagner Clinic purchases land for $175,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attoney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land? a. $157,200 b. $175,000 C. $179,700 d. $157,500 Wesley Hospital installs a new parking lot. The paving cost $40,000 and the lights to illuminate the new parking area cost $25,000. Which of the following statements is true with respect to these additions? a. $40,000 should be debited to the Land account. b. $25,000 should be debited to Land Improvements. C. $65,000 should be debited to the Land account. d. $65,000 should be debited to Land Improvements