Use the following to answer questions 64-67:

At the end of January, the unadjusted trial balance of VIP, Inc., included the following accounts:

	Debit	Credit
Sales (80% represent credit sales)		$400,000
Accounts Receivable	$240,000
Allowance for Doubtful Accounts		700

64. Refer to the above data. VIP uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $6,200. What is the amount of uncollectible accounts expense recognized in VIP's income statement for January?

A) $6,200.

B) $5,500.

C) $6,900.

D) Some other amount.

65. Refer to the above data. VIP uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $6,200. The net realizable value of VIP's accounts receivable in the January 31 balance sheet is:

A) $233,100.

B) $240,000.

C) $233,800.

D) $246,200.

66. Refer to the above data. VIP uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 2% of credit sales. What is the amount of uncollectible accounts expense recognized in VIP's income statement for January?

A) $6,400.

B) $8,000.

C) $8,700.

D) $7,200.

67. Refer to the above data. VIP uses the income statement approach in estimating uncollectible accounts expense, and uncollectible accounts expense is estimated to be 2% of credit sales. The net realizable value of VIP's accounts receivable in the January 31 balance sheet is:

A) $231,300.

B) $233,600.

C) $232,900.

D) Some other amount.

68. The excess of current assets over current liabilities is called:

A) Current ratio

B) Working capital

C) Debt ratio

D) Quick ratio

69. . Quick assets include

A) Cash, marketable securities and receivables

B) Cash, marketable securities and inventories

C) Cash, inventories and receivables

D) Market securities, receivables and inventories.

70. . The Neptune company has working capital of $90,000 and a current ratio of 3 to 1. The amount of current assets is:

A) $270,000.

B) $180,000.

C) $135,000.

D) $ 90,000.