Use the following information to answer the next th balance in accounts receivable and a $150 balance in the allowance for doubtful accounts. The company had credit sales of $12,000, collections on accounts receivable of $13,000, and wrote off uncollectible accounts of $200 during the year. The company believes that 2 percent of its credit sales will be uncollectible. 1. The balance in the accounts receivable account at the end of the year would be a. $3,600 b. $3,400. c. $3,250. d. $4,360. 2. The amount of uncollectible accounts expense appearing on the year's income statement would be a. $532. b. $332. c. $240. d. $440. The net realizable value of receivables at the end of the year would be a. $3,210. b. $3,350. c. $3,250. d. $3,410. 3. 4. Under the allowance method, recording the write-off of an uncollectible account will have what effect on the accounting equation? a. Total assets decrease and equity decreases. b. Total assets remain unchanged. c. Total assets increase and equity decreases. d. Liabilities increase and equity decreases. ABC Company accepts a credit card in payment for $1,500 of services performed for a customer. The credit card company charges a 4 percent service fee. Recording the transaction on ABC's records will a. increase assets by $1,440. b. increase expenses by $60. c. increase revenue by $1,500. d. All of the above. 5. 6. Under the direct write-off method, the write-off of a $500 uncollectible account will decrease assets by $500 and decrease liabilities by $500. decrease assets by $500 and increase uncollectible accounts expense by $500. have no effect on total assets. decrease assets by $500 and increase equity by $500. a. b. c. d