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1/ Oswego Clay Pipe Company sold $46,800 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego uses the gross method of accounting for cash discounts.

What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?

Multiple Choice

• Cash	48,672
  Accounts receivable		46,800
  Sales discounts forfeited		1,872

• Cash	46,800
  Accounts receivable		44,928
  Sales discounts forfeited		1,872

• Cash	46,800
  Accounts receivable		44,928
  Discounts receivable		1,872

• Cash	46,800
  Accounts receivable		46,800

2/ Calistoga Produce estimates bad debt expense at 0.30% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $479,000 and $1,610 respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $319,000 and $318,000, respectively, and $1,770 in accounts receivable were written off.

Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2018, is:

Multiple Choice

• $1,447.

• $1,682.

• $797.

• $702.

3/ Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $487,000 and $1,470, respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $321,000 and $317,000, respectively, and $1,820 in accounts receivable were written off.

Calistoga's accounts receivable at December 31, 2018, are:

Multiple Choice

• $489,180.

• $481,180.

• $485,180.

• $491,000.

4/ As of January 1, 2018, Farley Co. had a credit balance of $534,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's credit sales have been uncollectible. During 2018, Farley wrote off $636,000 of accounts receivable. Credit sales for 2018 were $18,000,000. In its December 31, 2018, balance sheet, what amount should Farley report as allowance for uncollectible accounts?

Multiple Choice

• $258,000.

• $894,000.

• $462,000.

• $360,000.

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