The following information is provided for the Jessup Company at December 31, Year3, just before any adjusting entries were made. All balance arc normal (debit vs. credit) unless I indicate otherwise. Assume (again) that Jessup uses the percentage of credit sales method. Historically, 1% of credit sales have proven to be uncollectible. After the appropriate adjusting entry, the balance in bad debt expense would be: A.7800 B.7400 C.8200 D.6600 E.7000 Karrier Inc. had a beginning balance in the Allowance for uncollectible accounts on January 1 of $8, 000 (normal credit balance). During the current year, Karrier wrote-off customer accounts of $10, 000 and recorded bad debt expense of $11, 200. What is the balance in the allowance for uncollectible accounts at December 31? (Assume the choices are all normal credit balances as well.) A.19200 B.6900 C.9200 D.13200 E.18000 Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses the perpetual method of accounting for inventory, and the gross method for recording sales discounts. CFI prepares monthly financial statements. CFI is preparing financial statements at 9/30. The inventory cost at September 30 is $1, 200. Because the Red Sox arc in the World Series, CFI determines that the Net Realizable Value is $2, 000. What is the effect on net income for this transaction? Note: if the event would NOT cause recognition of revenue or expense then select A: No effect on net income. A. No effect on net income B. Decrease net income C. Increase net income Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses the perpetual method of accounting for inventory, and the gross method for recording sales discounts. CFI prepares monthly financial statements. Instead of the previous entry, assume this circumstance. CFI is preparing financial statements at 9/30. The inventory cost at September 30 is $1, 200. Because the Red Sox arc NOT in the World Series, determines that the Net Realizable Value of the hats is only $1, 000. What is the effect on net income for this transaction? Note: if the event would NOT cause recognition of revenue or expense then select A: No effect on net income. A. No effect on net income B. Decrease net income C. Increase net income Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses the perpetual method of accounting for inventory, and the gross method for recording sales discounts. CFI prepares monthly financial statements. On October 3, CFI receives a payment in full from a customer who purchased $1, 000 of hats on September 8, 1/15, n/30. What is the effect on net income for this transaction? A: No effect on net income A. No effect on net income B. Decrease net income C. Increase net income Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses the perpetual method of accounting for inventory, and the gross method for recording sales discounts. CFI prepares monthly financial statements. On October 4, CFI pays $300 in shipping expenses on a crate of hats they previously purchased. (In other words, cash goes down $300, so what is the other side of this entry. Really think back to the D arrow example the lecture went over.) What is the effect on net income for this transaction? Note: if the event would NOT cause reconsecration of revenue or expense then select A: No effect on net income. A. No effect on net income B. Decrease net income C. Increase net income