SECTION A The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Uncollectible accounts expense reported on the income statement?? A) $15,900 B) $14,900 C) $14,100 D) $15,000 (2 Marks) 2. Which of the following is the correct journal entry to write off a debt that has gone bad when the company uses the direct write-off method? A) Debit Accounts receivable and credit cash. B) Credit Accounts receivable and debit Uncollectible accounts expense. C) Debit Allowance for uncollectible accounts and credit Accounts receivable. D) Credit Accounts receivable and debit Interest expense. (2 Marks) 3. Which of the following are the two methods of accounting for uncollectible receivables? A) The direct write-off method and the liability method. B) The allowance method and the direct write-off method. C) The asset method and the sales method. D) The allowance method and the liability method. (2 Marks) 4. Which of the following sections from the statement of cash flows includes activities that create revenue, expenses, gains and losses? A) The investing section B) The financing section C) The operating section D) The noncash investing and financing section (2 Marks) 5. A statement of cash flow is generated to show: A) The revenues the company has earned. B) The expenses the company incurred during the time period. C) The inflow and outflow of cash during the time period. D) How profits were generated. (2 Marks) 6. A check was written by a business for $205, but was recorded in the cash payments journal as $502. How would this error be included on the bank reconciliation? (A) A deduction on the bank side (B) An addition on the bank side (C) A deduction on the book side (D) An addition on the book side (2 Marks) 7. Which of the following is TRUE about a bank reconciliation? (A) A bank reconciliation should not be prepared by an employee who handles cash transactions (B) A bank reconciliation cannot be prepared with online banking