Given the following 2024 information for the Pinto Company:

Decrease in Wages Payable $ 400

Operating Expenses $5,100

Total Cash paid for expenses $4,000

12/31/24 Prepaid Insurance $1,200

Operating Expenses and cash paid for expenses consisted of amounts for insurance and wages only.

The 1/1/24 balance of Prepaid Insurance was:

a.

$500

b.

$1,750

c.

$2,700

d.

$300

e.

$1,900

Widlak Co. reported sales revenue of $4,600 on its income statement for the year ended December 31, 2024. The Accounts Receivable account decreased from $1,400 to $1,200 during 2024. The Allowance for Uncollectible Accounts decreased by $300 during 2024. Bad Debt Expense for 2024 was $75. Under the cash basis of accounting, Widlak would have reported 2024 sales of:

a.

$4,225

b.

$4,400

c.

$4,325

d.

$4,425

e.

$4,025