Question

although i have the answers for problem 4 and 5 can someone please explain why that's the answer

venes quring 2016. What was the amount of Bad Debt Expense reported in 2016? 3) A. $14,400 B) $79,000 C) $64,600 D) $28,800 4) Langley Company uses the allowance method. During January 2016, Langley writes off a $500 customer account balance when it becomes clear that the customer will never pay. The entry to record the write-off will: 4)_ A) not increase the expenses for 2016. D) decrease net accounts receivable by $500. C) decrease total assets by $500. D) decrease net income for 2016 by $500. 5) Daley Company uses the allowance method. At December 31, 2015, the company's balance sheet reports Accounts Receivable, Net in the amount of $17,000. On January 2, 2016, Daley writes off a $1,500 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? 5) A $1,500 B) $15,500 $18,500 $17,000 6) B. Darin Company purchased a truck and trailer for $54,000. The appraised values of the truck and trailer are

Answer 1

Part 4)

The correct answer is

A)not increase the expenses for 2016

Explanation

When a company uses allowance method and it write off the customer account balance, it is adjusted with the allowance for doubtful debt account instead of debiting in expense account. The assets won't change because if account receivable decreases, so allowance for doubtful debt also decreases, so net receivable remains same and assets also remain same.

Part 5)

The correct answer is D) $ 17000

Explanation

The same explanation given above will work for this answer as well.

Than you