2023 1 The interest accrued on 6 500 at 6 for 60 days is A 36 B 42 C 65 D 180 E 420 | Assignments Online

1.The interest accrued on $6,500 at 6% for 60 days is:
A)$36.
B)$42.
C)$65.
D)$180.
E)$420.

2.The amount of bad debt expense can be estimated by:
A)The percent of sales method.
B)The direct charge-off method.
C)The aging of accounts receivable method.
D)Only A & C.
E)All of the above.

3.A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:
A)Direct write-off method.
B)Aging of accounts receivable method.
C)Percentage of sales method.
D)Aging of investments method.
E)Percent of accounts receivable method.

4.A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company’s unadjusted trial balance reported the following selected amounts:
Accounts receivable………………$355,000 debit
Allowance for uncollectible accounts…     500 credit
Net Sales………………………. 800,000 credit
All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
A)$1,275
B)$1,775
C)$4,500
D)$4,800
E)$5,500