Short answer

1. The Company uses the balance sheet approach to estimate baddebt expense. Credit sales for the period were $10 million. Thebeginning balance in the allowance for doubtful accounts was acredit balance of $44,300. During the year, $41,000 of receivableswere written off. The aging schedule suggests that the endingbalance in the allowance for doubtful accounts is $51,500. What wasbad debt expense for the period? Credit sales were $950,000. Cashflow from operating activities was $650,000. Cash sales were$350,000. Accrual expenses were $925,000. Cash flow from financingactivities was $400,000. What was net income? What does the currentportion of long term debt represent? In periods of rising prices,which inventory method (LIFO or FIFO) will provide you with ahigher net income? Record the journal entry to write off $4,000 ofreceivables that were deemed uncollectible.Assume that $500 of thereceivables written off in (8) were subsequently collected. Recordthe journal entry to record the collection of the $500. What does adeferred tax liability represent?What does a deferred tax assetrepresent?What was the gain on the disposal of a piece of equipmentif the equipment had a historical cost of $25,000, relatedaccumulated depreciation of $13,500, and was sold for $15,500. Inaddition, in its last year, the equipment had produced 4,000 unitsof inventory that had been sold for $3.50 a piece. Each piece hadan inventory cost of $1.75 a piece. What is goodwill on the balancesheet? What does a gain on the disposal of an asset represent? Whyis the loss on the disposal of an asset considered a non-cash item?Current assets are $45,000. Current liabilities are $35,000. Longterm assets are $60,000. Long term liabilities are $10,000. What isthe current ratio?