Whee ling In c. uses the aging of accounts receivable method. Its estimate of un

Question

Whee ling In c. uses the aging of accounts receivable method. Its estimate of uncollectible resulting from the aging analysis equals $5,000. At the end of the year, the balance of the unadjusted debit balance of the Allowance for Doubtful Accounts Receivable is $100,000 and Acc Expense for the current year? ount s is S500. Credit sales during the year totaled $150,000. What is the estimated Bad Debt $4,500 $5,000 $5,500 $7,000 On July 1 , 2016 . Empire Inc. lends $8,000 to a customer and receives a 9% note due in two years. Interest is due in full on July 1,2018, the due date of the note. What is the amount of Interest ent for the year ended December 31. 2016? $1,440 $720 $420 $360

Explanation / Answer

a) Estimated bad debt expense = 5000+500 = 5500

so answer is c) $5500

B) Interest revenue = (8000*9%*6/12) = 360

so answer is d) $360

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