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Q-6 Ryan Company had the following information in
2014.
Accounts receivable
12/31/14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000
Allowance for uncollectible account 12/31/14 (before
adjustment). . . . . . . 700
Credit sales during
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Cash sales during
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Collections from customers on account during
2014. . . . . . . . . . . . . . . . . . 45,000
Uncollectible accounts are determined by the percent-of-sales method to
be
4% of credit sales. How much is uncollectible-account expense for
2014?
Q-7 Which of the following assets are not included in "cash equivalents"
in a typical balance sheet?
A.Time deposits
B.Certain very low-risk equity securities