Question

please help with all these accouting multiple choice problems!

Times New... v 12 v A A Aa As BI U va x x Aver Av Paragraph Styles Sensitivity 15. A company has an ending accounts receivable balance of $1,800,000 and it estimates that uncollectible accounts will be 2% of the receivable balance. If Allowance for Doubtful Accounts has a credit balance of $4,000 prior to adjustment, its balance after adjustment will be a credit of A) $40,000 B) $36,000 C) $35,920. D) $32,000 16. Smithson Corporation's unadjusted trial balance includes the following balances (assume normal balances): • Accounts Receivable $1,119,000 • Allowances for Doubtful Accounts $ 21,300 Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record? A) $67,140 B) $45,840 C) $44,562 D) $68,418 17. The interest on a $20,000,6%, 60-day not receivable is A) $1,200 B) $200 C) $400 D) $600. 18. The interest on a $10,000,9%, 90-day not receivable is A) $225 B) 5900 C) $75 D) $150. age 4 of 6 1032 words Focus E DE - - + 100 MacBook Pro

Answer 1

15)

Accounts receivable balance = $1,800,000

Uncollectible accounts = 2%

Balance after adjustment will be a credit of $1,800,000 * 2% = $36,000

Option ' B' is correct

16) Bad debt expense to be recorded is

($1,119,000 * 6%) - $21,300

= $45,840

17) Interest in 60-day note receivable

= $20,000 * 6% *60 days / 360

= $200

18) Interest in 90-day note receivable

= $10,000 * 9% * 90 days /360

= $225