What is the impact on total assets when a company writes off a receivable? 

For each of the following Six (6) Questions, determine if the expenditure should be recorded as an Asset or an Expense: 

Preferred Stock

In its first year of operations, Gem Co. estimates that it will be unable to collect [per]% of sales made on account. If Gem has cash sales of $[csh],000 and credit sales of $[cr],000 during the period, how much uncollectible accounts expense should they report?  If necessary, round to nearest whole number. Enter answer as a whole number (no decimals) and without a dollar sign (i.e., 4,250).

In the first year of operation, ABC Company has credit sales of $[cr]0,000, none of which have been collected. Management estimates that [per]% of credit sales will be uncollectible. If there is no prior balance in the Allowance for Uncollectible Accounts, calculate the Net Realizable Value of A/R. 

Cost of the chain installed on each bike

Identify if the following are True or False: 

Electricity used in the office building. The company pays a monthly amount plus a certain amount per kilowatt used

Which of the following is true regarding credit card payments:  The only impact to the income statement is the revenue from the sale.  The company records both expense for the credit card fee and the revenue for the sale at the time of sale.  The company records a receivable for the sale less the credit card fee. 

Wages of the company’s sales team. Each employee is paid a monthly salary plus a commission for each bike sold.