At 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 uncollectible accounts would be: A. $6,540. B. $7,800. C. $7,140. D. $7,740.

2. At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (debit) 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 uncollectible accounts would be: A. $6,540. B. $7,800. C. $7,140. D. $7,740.

3. At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $311,000 and in Allowance for Uncollectible Accounts of $970 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense for the year should be: A. $6,220. B. $6,450. C. $5,250. D. $7,190.

4. The purpose of recording an allowance for uncollectible accounts is to: A. Record the sales returns and allowances. B. Report net sales conservatively. C. Report accounts receivable at net realizable value. D. Report accounts receivable for the total amount of sales in the period.

5. A company's adjustment for uncollectible accounts at year-end would include a: A. Debit to Bad Debt Expense. B. Credit to Accounts Receivable. C. Debit to Accounts Receivable. D. Debit to Allowance for Uncollectible Accounts.

Answer rating: 100% (QA)

ANSWER 1 is A Explanation The amount of the adjustment for uncollectible accounts would be 238000 x ... View the full answer