Stephenson Corp. is a wholesaler of imported products. The company had the following opening balances at January 1, 2020: Accounts receivable $248,000 Less: Allowance for doubtful accounts $-29,760 Net realizable value $218,240 During 2020, the company had the following summary transactions: a. Sales on account, $2,693,000; cost of goods sold, $1,212,000 b. Products returned by customers, $54,000; cost of inventory returned, $24,000 c. Cash collections on accounts receivable, $2,478,000 d. Write-offs of accounts receivable determined to be uncollectable, $37,200 e. A customer that was previously written off sent in a cheque for $3,300 f. You estimate that $45,000 of your accounts receivable will be uncollected in the upcoming year. Record all of the above transactions and then answer the questions that follow. Question 67 (4 points) The entry to record transaction (a) would include which of the following? Select ALL that apply. (4 marks) a) Increase Cash b) No entry required c) Increase Cost of Goods Sold d) Increase Accounts Receivable e) Decrease Accounts Receivable f) Increase Bad Debt Expense g) Decrease Allowance for Doubtful Accounts Oh) Decrease Cost of Goods Sold |i) Decrease Bad Debt Expense i) Decrease Sales k) Decrease Inventory 1) Decrease Cash m) Increase Sales n) Increase Inventory Oo) Increase Allowance for Doubtful Accounts Question 68 (4 points) The entry to record transaction (b) would include which of the following select ALL that apply. (4 marks) a) Decrease Bad Debt Expense b) Increase Sales Returns and Allowances Oc) Decrease Sales Returns and Allowances d) Increase Cash d | e) Increase Bad Debt Expense +) Decrease Accounts Receivable Og) Decrease Cash Oh) Increase Inventory Oi) No entry required Oj) Decrease Inventory k) Increase Sales 1) Increase Allowance for Doubtful Accounts Om) Decrease Sales On) Increase Accounts Receivable O Increase Cost of Goods Sold Op) Decrease Allowance for Doubtful Accounts 9) Decrease Cost of Goods Sold Question 69 (2 points) The entry to record transaction (c) would include which of the following? Select ALL that apply. a) Decrease Accounts Receivable a b) Increase Accounts Receivable O Decrease Cash d) Decrease Cost of Goods Sold e) Increase Cash f) No entry required Og) Decrease Allowance for Doubtful Accounts Oh) Decrease Bad Debt Expense Oi) Increase Cost of Goods Sold O Increase Bad Debt Expense Ok) Increase Allowance for Doubtful Accounts Question 70 (2 points) The entry to record transaction (d) would include which of the following? Select ALL that apply. a) Decrease Allowance for Doubtful Accounts b) Increase Accounts Receivable c) Increase Allowance for Doubtful Accounts d) Increase Cash Oe Decrease Bad Debt Expense f) No entry required g) Increase Bad Debt Expense Oh) Decrease Cost of Goods Sold Oi) Decrease Accounts Receivable O Increase Cost of Goods Sold ) |k) Decrease Cash
