1) A debit balance in the Allowance for Doubtful Accounts

A. is the normal balance for that account.

B. indicates that actual bad debt write-offs have been less than what was estimated.

C. cannot occur if the percentage of receivables method of estimating bad debts is used.

D. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.

The formula for depreciable cost is

	A.	initial cost + residual value
	B.	initial cost - residual value
	C.	initial cost - accumulated depreciation
	D.	depreciable cost = initial cost

The Weber Company purchased a mining site for $1,750,000 on July 1, 2014. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. The estimated residual value of the property is $150,000. During 2014 the company extracted 6,500 tons of ore. The depletion expense for 2014 is

	A.	$17,500
	B.	$16,000
	C.	$26,000
	D.	$15,000