14.

The adjusting entry to record an increase in Allowance for Doubtful Accounts involves

a. debiting Allowance for Doubtful Accounts and crediting Bad Debt Expense.

b. debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts.

c. debiting Allowance for Doubtful Accounts and crediting Accounts Receivable.

d. debiting Accounts Receivable and crediting Bad Debt Expense.

15. Gross sales less sales returns and allowances and sales discounts equals .....................?

16.

The single-step form of income statement lists all revenue items and their totals first, followed by all expense items and their totals, to produce a difference that is either net income or net loss.

True

False

17.

Posting to the accounts payable ledger should be made at the end of the month.

True

False

18.

The following information was taken from the financial statements of Sunshine City:

Total current assets	$ 53,000
Property, plant, and equipment	6,000
Current liabilities	21,000
Long-term liabilities	4,000
Owner's equity	34,000
Beginning inventory	31,000
Ending inventory	33,000
Cost of goods sold	152,000
Net income	42,000

The inventory turnover (rounded to one decimal place) for Sunshine City is

a. 5.0 times.

b. 3.0 times.

c. 4.8 times.

d. 2.2 times.