1. On January 1, 2012 Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,000 salvage value. The amount of depreciation expense recognized in 2013 assuming that Morgan uses the straight line method is:

A 4,320

B 2,700

C 3,200

D 6,400

2. A current asset is:

A an asset that will be used in the operation activities of a business

B an asset generated by the operations of a business within the past year

C an asset that is expected to be used or converted to cash within one year or the operating cycle, whichever is longer

D a miscellaneous asset that is small in dollar amount

3. At the end of 2012, Duffau Company had outstanding accounts receivable of $109,760. Before recording the adjusting entry for uncollectible accounts, the balance in the Allowance for Doubtful Accounts was $350. If Duffau estimates that it will not collect 4 percent of its accounts receivable, what amount of uncollectible accounts expense should Duffau record? Round to the nearest dollar.

A 4,040

B 4,740

C 4,390

D 5,090