1. The credit balance of the Allowance for Doubtful Accounts accounts E-Z Company was greater than the bad debt being written off, the write-off against the allowance account results in what type of financial statement impact:

An increase in the expenses of the current period

A reduction in current assets

No effect on the expenses of the current period

A reduction in equity

A reduction in current liabilities

2. Salvage value is:

		Also called residual value.
		Also called scrap value.
		An estimate of the asset's value at the end of its benefit period.
		A factor relevant to determining depreciation.
		All of the above.