When it is unlikely that the company may lose a lawsuit, a company will:

1)	Omit this information from its financial statements and notes disclosure.

2)	Include a description in the foot notes to the financial statements.

3)	Record the estimated amount of loss as a provision on the balance sheet.

4)	Record the amount of the liability times the probability of its occurrence.

David Callen is a warehouse custodian and also maintains the accounting records of the inventory held at the warehouse. Which control activity is violated?

1)	review and reconciliation

2)	documentation

3)	segregation of duties

4)	assignment of responsibility

Shannon Ltd.'s allowance for doubtful accounts was $255,000 at the end of 2020 and $315,000 at the end of 2019. For the year ended December 31, 2020, Shannon reported bad debt expense of $54,000 in its income statement. What amount did Shannon Ltd. write off uncollectible debts during 2020?

1)

$114,000

2)

$103,950

3)

$36,000

4)

$60,000