ACC 557 TUTOR Great Stories /acc557tutor.com ACC 557 TUTOR Great Stories /acc557tutor.com | Page 47

receivable accounts at year end indicated that uncollectible
accounts should be estimated at $40,000.
Bad debts expense for 2013 is
$40,000.
$13,000.
$5,000.
$8,000.
13-
Multiple Choice Question 118
If a retailer regularly sells its receivables to a factor, the service
charge of the factor should be classified as a(n)
contra asset.
other expense.
selling expense.
interest expense.
14-
Multiple Choice Question 104
During 2013, Alfred Inc. had sales on account of $132,000, cash
sales of $54,000, and collections on account of $84,000. In
addition, they collected $1,450 which had been written off as
uncollectible in 2012. As a result of these transactions, the change
in the accounts receivable balance indicates a
$102,000 increase.
$100,550 increase.