QUESTION 21 When using the allowance method for accounting for bad debts accounts receivable is reported on the balance sheet at the expected net realizable value. When a particular receivable from a customer ultimately is determined to be un collectible and is written off the recording of this event will 2. Have no effect on the net realizable value of the accounts receivable b. Decrease the net realizable value of the accounts receivable c Hive an effect that is not determinable from the information given d. Increase the net realizable value of the accounts receivable QUESTION 22 Kite Company has provided the following information prior to any year end bad debe adjustment: Kite estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. How much is kite's bad debt expense? Cash sales, $150,000 Credit sales, $450.000 . Selling and administrative expenses $110.000 Sales returns and allowances, $30,000 Gross profit. 5490,000 Accounts receivable, $110,000 Sales discounts, $14,000 Allowance for doubtful accounts credit balance, 51,200 a. 56.750 b. $7.950 55.550 d. 57.800