The company uses the Allowance Method of Accounting for Uncollectible Accounts, and has the following data Accounts Receivable $66,000 Collections of Accounts Receivable $58,000 Estimate of Uncollectible Account 1% (4 points) 9. Determine the Accounts Receivable balance at the end of the accounting period a) $66,000 - $58,000 = $8,000 b) $66,000 - 1566,000 x 1%) = $65,340 c) $66,000 x 1% = 5660 (4 points) 10. How the Uncollectible Account Expense will affect the accounting equation Financial Statements horizontal)? a) Increase Allowance for Uncollectible Account and decrease Retained Earnings by 5660. Increase Uncollectible Account Expense and decrease Net Income by 5660. The cash flow will be affected by S660 outflow, b) Increase Allowance for Uncollectible Account and decrease Retained Earnings by 5660 Increase Uncollectible Account Expense and decrease Net Income by 5660. The cash flow will not be affected by S660 outflow c) Increase Allowance for Uncollectible Account and increase Retained Earnings by S660. Increase Sales Revenue and increase Net Income by 5660. The cash flow will be affected by S660 outflow (4 points) 11. After multiple actions trying to collect some accounts, the company wrote off $300 of uncollectible accounts receivables. How this event will affect the accounting equation Financial Statements horizontal? a) Decrease Accounts Receivable and decrease Retained Earnings by $300. Increase Uncollectible Account Expense and increase Net Income by $300. The cash flow will be affected by $330 outflow, b) Decrease Accounts Receivable and decrease Allowance for Uncollectible Account by $300. The cash flow will be affected by $330 outflow, c) Decrease Accounts Receivable and decrease Allowance for Uncollectible Account by $300. The cash flow will not be affected by $330 outflow, (4 points) 12. The company recovered $50 of a receivable that was previously written off. How this event will affect the accounting equation (Financial Statements-horizontal)? a) Increase Account Receivable and increase Allowance for Uncollectible Account by $50. Increase Cash and decrease Account Receivable by $50. The cash flow will be affected by $50 inflow b) Decrease Account Receivable and decrease Allowance for Uncollectible Account by $50. Increase Cash and decrease Account Receivable by $50. The cash flow will be affected by $50 inflow c) Increase Cash and decrease Account Receivable by $50. The cash flow will be affected by 550 inflow. On February 2, xx1 ABC Company lent money to DEF Enterprises for the amount of $10,000. The interest was 6% annual rate (4 points) 13. Once ABC Company processed the loan of money, how this event will affect the accounting equation Financial Statements-horizontal? a) Increase Cash and increase Notes Receivable by $10,000. The cash flow will be affected by $10,000 inflow b) Decrease Cash and increase Notes Receivable by $10,000. The cash flow will be affected by $10,000 outflow, c) Decrease Cash and decrease Notes Receivable by $10,000. The cash flow will be affected by $10,000 outflow. (4 points) 14. If ABC Company decided to register the interest adjusting entry at the end of the accounting period on December 31, xxx1; how this event will affect the accounting equation (Financial Statements horizontal? a) Increase Interest Receivable and increase Retained Earnines by $550. Increase interest Revenue and increase Net Income by $550 b) Increase Interest Receivable and decrease Retained Earnings by $550. Decrease interest Expense and decrease Net Income by $550 c) Increase. Interest Receivable and increase Retained Earnings by $600. Increase Interest Revenue and increase Net Income by $600