Sonic Inc. uses an aging of accounts receivable to compute bad debts. The aging showed that $9,000 of accounts receivable were likely not to be collected. Sonic reported total credit sales of $250,000. Before its adjustment, Sonic had a credit balance of $4,750 in its allowance for doubtful accounts. How much bad debt expense did Sonic need to record (assuming no write-offs)? 9. A) $4,250 B) $4,750 C) $9,000 D) None of the above Ability to A) Operating cash flows are positive and investing cash flows are negative. B) Investing cash flows are negative and financing cash flows are positive C) Operating cash flows are negative and investing cash flows are positive. 1o. Which of the following cash flow patterns is most indicative of a company in financial decline? ting cash flows are negative and financing cash flows are negative g the operating activities section of the statement of cash flows, which of the following statements is true: A) The direcet method always produces a higher operating cash flow amount during years The direct method always produces a higher operating cash flow amount during years with lower net income. higher net income B) C) The indirect method always produces a higher operating cash flow amount during years with lower net income. D) None of the above are true. 12. Aubergine Industries had beginning inventory of $10,000 and purchased $75,000 of inventory to be: merchandise during 2020. The company had sales of $90,000 and has traditionally had a cost-to- sales ratio of 75%. Using the gross margin estimation method, the company estimates its ending a) $67,500. b) $65,000. c) $17,500. d) $22,500. Lewis-Bruno Co. purchased a plot of land with an office building and warehouse on it for a single purchase cost of $1,800,000. If purchased individually and separately, the land would cost approximately $1,000,000; the building would cost approximately $600,000; and the warehouse would cost approximately $900,000. The assets were carried on the seller's books at: land 5800,000; building $500,000; and warehouse $700,000. At what amounts should Lewis-Bruno Co. record each asset? 13. Warehouse $900,000 $630,000 $648,000 $700,000 Land A) $1,000,000 B) S 720,000 C) 720,000 D) $ 800,000 Building $600,000 $450,000 $432,000 $500,000 14. A company sells a building for $50,000 on the last day of its fiscal year. The building originall cost $200,000, and its accumulated depreciation account had a balance of $110,000 before the current year's depreciation of $15,000 had been recorded. The company should report a: A) $25,000 gain on disposal. B) $40,000 gain on disposal. C) $40,000 loss on disposal. D) $25,000 loss on disposal