\"Use the following information to answer the questions below. The general ledge
ID: 2590421 • Letter: #
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"Use the following information to answer the questions below. The general ledger controlling account for Accounts Receivable shows a debit balance of $50,000. The Allowance for Uncollectible Accounts has a credit balance of $3,000. Net sales for the year were $500,000. In the past, 3 percent of sales has proved uncollectible, and an aging of Accounts Receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. 7. Using the percentage of net sales method, Uncollectible Accounts Expense would be debited for [A] $18,000. [B] $15,000. [C] $12,000. [D] $20,000. 8. Using the percentage of net sales method, the Allowance for Uncollectible Accounts balance (after adjustment) would be [A] $20,000. [B] $18,000. [C] $15,000. [D] $12,000. 9. Using the accounts receivable aging method, the Uncollectible Accounts Expense would be - debited for [A] $23,000. · [B] $20,000. [C] $21,500. [D] $17,000. 10. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be [A] $23,000. [B] $17,000. [C] $20,000. [D] $21,500. 11. Which of the following is an inventory valuation method? [A] Average-cost [B] Perpetual [C] First-in, first-out [D] Lower-of-cost-or-market 12. Inventory turmover is expressed in terms of [A] a percentage. [B] days. [C] times. [D] dollars.Explanation / Answer
7) Estimated bad debts 500,000*3%= 15000 when sales (income statement approach ) is used we don’t consider the balance in allowance account option B is the correct answer 8) uncollectible accounts expense = 15000+3000 = 18000 option B is the correct answr 9) option D is the correct answer $17,000 20,000-3000 = 17000 10) 20,000 option C is the correct answer 11) option b -perpetual inventory 12) times option C is the correct answer
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