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Use the following to answer questions 1-4: odger controlling account for Accounts Receivable shows a debit balance of $25,000. The Allowance for e Accounts has

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Use the following to answer questions 1-4: odger controlling account for Accounts Receivable shows a debit balance of $25,000. The Allowance for e Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales has proved has proved uncollectible, and an aging of Accounts Receivable resulted in an estimate of $10,000 of incollectible accounts receivable. 1. Using the percentage of net sales method, Uncollectible Accounts Expense would be debited for A) $7,500. B) $10,000 C) $6,000. D) $9,000 2. Using the percentage of net sales method, the Allowance for Uncollectible Accounts balance (after adjustment) would be A) $6,000. B) $10,000 C) $7,500. D) $9,000. 3. Using the accounts receivable aging method, the Uncollectible Accounts Expense would be debited for A) $11,500. B) $10,750. C) $10,000. D) $8,500. 4. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be A) $11,500. B) $10,750. C) $8,500. D) $10,000. 5. You have just received notice that Sarah Koonce, a customer of yours with an Accounts Receivable balance of $200, has gone bankrupt and will not be making any future payments. Assuming you use the allowance method, the entry you make is to A) debit Allowance for Uncollectible Accounts and credit Accounts Receivable. B) debit Uncollectible Accounts Expense and credit Accounts Receivable. C) debit Allowance for Uncollectible Accounts and credit Uncollectible Accounts Expense. D) debit Uncollectible Accounts Expense and credit Allowance for Uncollectible Accounts. 6. Using the percentage of net sales method, uncollectible accounts expense for the year is estimated to be $54,000. If the balance in Allowance for Uncollectible Accounts is an $18,000 credit before adjustment, what is the balance after adjustment? A) $18,000 B) $54,000 C) $72,000 D) $38,000 Page 1

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