Use the same information as in question 4 except that

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5. Use the same information as in question 4, except that Hughes has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. In this situation, the amount of bad debt expense that should be reported for the year is: a. $5,000. b. $55,000. c. $60,000. d. $65,000. 6. Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If the Allowance for Doubtful Accounts has a credit balance of $15,000 before adjust- ment, what is the balance after adjustment? 7. In 2010, Roso Carlson Company had net credit sales of $750,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit balance of $18,000. During 2010, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted bal- ance of Allowance for Doubtful Accounts at December 31, 2010? 8. An analysis and aging of the accounts receivable of Prince Company at December 31 reveals the following data. Accounts receivable $800,000 Allowance for doubtful accounts per books before adjustment 50,000 Amounts expected to become uncollectible 65,000 The cash realizable value of the accounts receivable at December 31, after adjustment, is: 9. One of the following statements about promissory notes is incorrect.The incorrect statement is: a. The party making the promise to pay is called the maker. b. The party to whom payment is to be made is called the payee. c. A promissory note is not a negotiable instrument. d. A promissory note is often required from high-risk customers. 10. Which of the following statements about Visa credit card sales is incorrect ? 11. Blinka Retailers accepted $50,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use.The entry to record this transaction by Blinka Retailers will include a credit to Sales of $50,000 and a debit(s) to:
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