Accounting -At December 31, Gill Co. reported accounts receivable of $228,000

| January 30, 2017

Question
At December 31, Gill Co. reported accounts receivable of $228,000 and an allowance for uncollectible accounts of $600 (debit). An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:

$4,560.

$3,960.

$600.

$5,160.

Beverage International reports net credit sales for the year of $504,000. The company’s accounts receivable balance at the beginning of the year equaled $43,000 and the balance at the end of the year equaled $53,000. What is Beverage International’s receivables turnover ratio? (Round your answer to one decimal place.)

11.7

9.5

1.2

10.5

The following information pertains to Lightning, Inc. at the end of the year:

Credit Sales

$81,000

Accounts Payable

11,800

Accounts Receivable

5,900

Allowance for Uncollectible Accounts

$1,000 credit

Cash Sales

35,000

Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?

$4,240

$3,240

$2,240

$5,640

On February 1, 2015, Middleton Corp. lends cash and accepts a $1,300 note receivable that offers 18% interest and is due in six months. How much interest revenue will Middleton Corp report during 2015? (Do not round intermediate calculations.)

$1,404

$234

$126

$117

Crimson Inc. recorded credit sales of $748,000, of which $570,000 is not yet due, $100,000 is past due for up to 180 days, and $78,000 is past due for more than 180 days. Under the aging of receivables approach, Crimson Inc. expects it will not collect 5% of the amount not yet due, 12% of the amount past due for up to 180 days, and 23% of the amount past due for more than 180 days. The allowance account had a debit balance of $3,300 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account?

$61,740

$69,540

$28,500

$58,440

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