se the following to answer questions 1-4: he general ledger Incollectib ales has proved ncol controlling account for Accounts Receivable shows a debit balance of $25,000. The Allowance for uncollectible, and an aging of Accounts Receivable resulted in an estimate of $10,000 of percentage of not sales method, Uncollectible Accounts Expense would be debited for ble Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of llectible accounts receivable. .Ungthe prcentage of 1. Using A) $7,500. B) $10,000 C) $6,000. D) $9,000. Col SoD 20 000 x ing the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment) would be A) $6,000. B) $10,000 C) $7,500 D) $9,000. 3. Using the accounts receivable aging method, the Unollectible Accounts Expense would be debited for A) $11,500. B) $10,750. C) $10,000. D) $8,500. 4. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be A) $11,500. B) $10,750. C) $8,500. D) $10,000. 5. You have just received notice that Sarah Koonce, a customer of yours with an Accounts Receivable balance of $200, has gone bankrupt and will not be making any future payments, Assuming you use the allowance method, the entry you make is to A) debit Allowance for Uncollectible Accounts and credit Accounts Receivable. B) debit Uncollectible Accounts Expense and credit Accounts Receivable. C) debit Allowance for Uncollectible Accounts and credit Uncollectible Accounts Expense. D) debit Uncollectible Accounts Expense and credit Allowance for Uncollectible Accounts. Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance in Allowance for Uncollectible Accounts is an $18,000 credit before adjustment, w is the balance after adjustment? A) $18,000 B) $54,000 C) $72,000 D) $38,000 6. Page 1 value assigned to inventory is A) $2,945. $2,850. B) C) $2,690. D) $2,675 19. When applying the lower-of-cost-or-market rule to inventory valua A) original cost, less physical deterioration. B) original cost. C) resale value. D) replacement cost. 20. When an account receivable that was previously written off is collected, it is necessary to revense the write-off before recording the collection. A) True B) False 21. Under the accounts receivable aging method, the balance in Allowance for Uncollectible Accounts must be considered prior to adjusting for estimated uncollectible accounts. A) True B) False 22. Allowance for Uncollectible Accounts is a contra-asset account. A). True B) False 23. Uncollectible accounts must be estimated because it is not possible to know which accounts will not be collected. A) True B) False 24. Gross margin equals the difference between net sales and A) operating expenses. B) cost of goods sold. C) net income. D) cost of goods sold plus operating expenses