1. A machine with a cost of $60,418.00 has an estimated residual value of $4,476.00 and an estimated life of 4 years or 17,565 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 3,533 hours?

Select the correct answer.

a. $27,971.00

b. $13,985.50

c. $12,152.39

d. $11,252.10

2. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $388,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?

Select the correct answer.

a. Bad Debt Expense$20,780

Accounts Receivable$20,780

b. Bad Debt Expense$21,280

Allowance for Doubtful Accounts$21,280

c. Bad Debt Expense$20,280

Accounts Receivable$20,280

d. Bad Debt Expense$22,280

Allowance for Doubtful Accounts$22,280