Text Shape Media Comment Collaborate 43) The Allowance for Bad Debts account has a credit balance of $4000 before the adjusting entry for bad debts expense. The company's management estimates that 5% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $280,000. What is the amount of Bad Debts Expense reported on the income statement for 2019? A) $14.000 B) $7000 C) $10,000 D) $18.000 Norm 44) The Allowance for Bad Debts has a credit balance of $8000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of Bad Debts Expense reported on the income statement? A) $23,000 B) $15,000 C) $8000 D) $7000 45) The Allowance for Bad Debts account has a debit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $15,000. What amount of bad debts expense will be reported on the income statement? A) $4,000 B) $7,000 C) $23,000 D) $15,000 S Font Palati B Characte Text Color 46) On October 1, 2019, ABC Company loaned A. Jenkins $13.000 at an annual interest rate of 3% with a maturity date of April 1, 2020. On October 1, 2019, ABC Company will record A) a credit to Notes Payable - A. Jenkins of $13,000 B) a debit to Notes Receivable - A. Jenkins of $13,000 C) a debit to Notes Receivable - A. Jenkins of $13,390 D) no entry since the note is due on April 1, 2020 47) On October 1, 2019, Jewelry Specialists Company made a loan to one of its customers. The customer signed a 6-month note for $100,000 at 15%. The total interest earned on the note to the nearest dollar) is A) $15,000. B) $3,750. C) $7,500 D) $1,250. 48) When a note receivable is outstanding at the end of an accounting period, A) the revenue recognition principle requires that earnings from the note be recorded in the year the cash is received B) the interest revenue carned on the note up to year-end is part of that year's earnings C) the total interest on the note should be recorded in an adjusting entry D) no adjusting entry is needed 49) Which of the following would be included in the entry by the payee to record a dishonored note receivable? A) a debit to Notes Receivable B) a debit to Accounts Receivable E I Spacing Bullets & Drop Cap C) a debit to Interest Revenue D) a credit to Interest Expense 50) On January 1, Southwest Company accepted a one-year note for $60,000 at 8% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company recorded the dishonor. The amount of the debit recorded on December 31 is A) $55,200 B) $4800 C) $64.800 D) $60,000