The general ledger shows Accounts Receivable $100,000 and the Allowance for Doubtful Accounts $ 5,000. Sales were $1,000,000 which included credit sales of $800,000. The following three questions are independent of each other:

______32. If the company wrote off an account as uncollectible for $500, the accounts receivable net realizable value after the write-off would be:

a. $94,500.

b. $95,000.

c. $99,500.

d. Some other amount.

______33. If the determination of bad debts was based on 1% of credit sales, the bad debt expense for the year would be:

a. $10,000.

b. $ 8,000.

c. $ 1,000.

d. Some other amount.

______34. If the determination of bad debts was based on 10% of accounts receivable, the bad debt expense for the year would be:

a. $10,500.

b. $10,000.

c. $ 5,000.

d. Some other amount.

______35. A company records a charge to warranty expense in the year it makes the sale. This is in accordance with:

a. The cost principle.

b. The matching principle.

c. The disclosure principle.

d. All of the above.