Acompany accounts for pose dots using the allowance method. When an actual bad debt occurs, what effect does it have on the accounting equation? A) Increases assets and increases stockholders' equity B) Decreases assets and decreases stockholders' equity. C) Decreases assets and decreases liabilities D) No effect on the accounting equation 8) A: December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for collectible accounts would be: A) 56,540. B) $7.800 C) 57.140 D) 57,740, 9) At December 31, Gill Co, reported accounts receivable of $238.000 and an allowance for collectible accounts of $600 (debit) before any adjustments. An analysis of accounts receivable suggests that the allowance for collectible accounts should be 3% of accounts receivable. The amount of the adjustment for collectible accounts would be A) 56,540 B) 57.800 C) 57.100 D) 57,740 10) The cost of the goods that a company sold during a period is shown in its financial and the cost of the goods that a company still has on hand at the end of the year is shown in the financial statements as A) Cost of goods sold inventory B) Goodson and inventory expense Inventory cost of poods sold D) Sales cost of goods sold A n y has beinning inventory for the year of S12,000. During the year, the company purchases inventory for $150,000 and ends the year with $20,000 of inventory. The company will report cost of goods sold equal to AUSIO B) 5138.000 C5142.000 DS72.000