please highlight the Answer

5) If the reconciled bank statement balance is lower than the companys book balance

A) Deposits might have been taken and not put into the bank

B) Checks might have been altered and paid for a higher amount than written for

C) Either A or B

D) Neither A nor B

6) A company can reduce the number of outstanding checks they have to deal with during the bank reconciliation by

A) Having Void after 90 days printed on their checks

B) Printing accounts payable checks on the 1st and 15th of the month rather than the 15th and 30th of the month

C) Either A or B

D) Neither A nor B

7) The Allowance Method for adjusting bad debt expense

A) Is required by Generally Accepted Accounting Principles

B) Only has to be done if the company feels like it

C) Allows writing off an uncollectable account receivable without having an expense effect

D) Both A and C

8) Smith Co.s Allowance for Doubtful Accounts shows a balance of $4,000 (credit) before adjustment. Smith estimates that 2% of the $300,000 of Accounts Receivable may become uncollectable. The entry Smith should make to adjust the Allowance account is

A) Debit to Cash $6000, Credit to Accounts Receivable $6,000

B) Debit to Bad Debt Expense $2,000, Credit to Allowance account $2,000

C) Debit to Allowance account $2,000 and Credit to Bad Debt Expense $2,000

D) Debit to Accounts Receivable for $4,000 and Credit to Sales for $4,000