21.As of January 1, 2021, Barley Co. had a credit balance of $536,000 in its...
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21.As of January 1, 2021, Barley Co. had a credit balance of $536,000 in its allowance for uncollectible accounts. Based on experience, 1% of Barley's gross accounts receivable have been uncollectible. During 2021, Barley wrote off $666,000 of accounts receivable. Barley's gross accounts receivable as December 31, 2021 is $18,800,000. In its December 31, 2021, balance sheet, what amount should Barley report as allowance for uncollectible accounts?
Multiple Choice $58,000.
$188,000.
$318,000.
$724,000.
22. On June 1, Parson Assoc. sold equipment to Arleo and agreed to accept a 3-month, $70,000, 15% interest-bearing note in payment at a time when the prevailing rate of interest for similar transactions was 15%. When the note was collected upon maturity, Parson would recognize interest revenue of:
Multiple Choice
$0.
$2,625.
$5,250.
$7,875.
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