1. The adjusting journal entry at year end to record Bad Debts Expense using an Allowance method will: a. Reduce profit and total current assets. b. Reduce profit but will not affect total current assets. c. Not affect profit but will reduce total current assets. d. Not affect profit or total current assets. 2. The balance of the Allowance for Doubtful Accounts account represents the: a. Total amount of uncollectible accounts written off to date. b. Amount of credit sales made this period that have not been collected. c. Amount of cash that has been set aside in a special fund to make up for bad debt losses. d. Portion of total Accounts Receivable that is not expected to be collected in cash. 3. Gatorland recorded Bad Debts Expense of $30,000 and recorded write offs of Accounts Receivable of $25,000 during 2020. The net effect of these two transactions on profit was a decrease of: a. $55,000 b. $30,000 c. $25,000 d. $5,000 e. $0 4. The journal entry to adjust for the accrued interest due on a Notes Receivable involves a. A debit to Interest Revenue and a credit to Notes Receivable. b. A debit to interest Receivable and a credit to Notes Receivable. c. A debit to Interest Receivable and a credit to interest Revenue. d. A debit to Interest Expense and a credit to interest Payable. 5. Yellow Company uses the Income Statement approach to calculate Bad Debts expense and record the Allowance for Doubtful Accounts related to them. During the year, net credit sales amounted to $240,000. Accounts Receivable had a balance of $11,000 at year end. It is estimated that 4% of the net credit sales are uncollectible. What is the year end adjusting journal entry to record bad debts expense? a. Accounts Receivable 9.600 Allowance for Doubtful Accounts 9,600 b. Allowance for Doubtful Accounts 9,600 I Bad Debts Expense 9,600 C. Allowance for Doubtful Accounts 9,600 Accounts Receivable 9,600 d. Cash 300