U Question 14 Madison Company had the following information for the year. Calculate Operating Income Operating Expenses Cost of Goods Sold Interest Revenue $95.000 Net Income 350.000 interest Expense 2.000 Net Sales $52,000 5.000 500.000 $50,000 552.000 $55.000 $150,000 Question 27 On June 10, a $5,000 account receivable from a customer has been determined to be uncollectible. Using the direct write-off method, what effect would the the account have on the financial statements? Accounts receivable and retained earnings would decrease, Accounts receivable and retained earnings would increase, Accounts receivable would decrease, and retained earnings would increase Accounts receivable would increase, and retained earnings would decrease. Question 28 On June 10, a $5,000 account receivable from a customer was written off using the direct write-off method. On November 1. the account was collected from customer. How would the reinstatement of the account (reversal of the write off) on November 1 affect the accounting equation? Accounts receivable would decrease, and retained camnings would increase Accounts receivable would increase, and retained earnings would decrease Accounts receivable and retained earnings would decrease Accounts receivable and retained earnings would increase