Question

please help with these accounting problems! all questions please and thank you!

E n 21 AaBbCcDdEe AaBbCcDdee No Spacing AaBbCcDc AoBbCcDdE Heading 1 Normal Heading 2 ACCT 201 Ch. 8 Practice Set Fall 2019 1. On January 15, Nifty Company sells merchandise on account to Martinez Associates for $5,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $1,000 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received? A) $4,000 B) $3,880 C) $3,850 D) $2,800 2. The account Allowance for Doubtful Accounts is classified as a(n) A) liability B) contra account of Bad Debt Expense. C) expense. D) contra account to Accounts Receivable. 3. Under the allowance method, Bad Debt Expense is recorded A) when an individual account is written off. B) when the loss amount is known. C) for an amount that the company estimates it will not collect. D) several times during the accounting period. 4. The net amount expected to be received in cash from receivables is termed the A) cash realizable value. B) cash-good value. C) gross cash value. D) cash-equivalent value. 5. If the amount of uncollectible account expense is understated at year end A) net income will be understated. B) stockholders' equity will be understated. C) Allowance for Doubtful accounts will be overstated. D) net Accounts Receivable will be overstated. ?id=479990

Answer 1

	1)	(5000-1000)*97%
		3880
		answer	option b
	2)	option d
		contra account to accounts receivable
	3)	option c
		for an amount that the company estimate
		it will not collect
	4)	option a
		cash realizable value
	5)	opton D
		Net accounts receivable will be overstated