1) What legislation requires the implementation and attestation of internal controls for publicly traded companies?

2) What two principles of GAAP apply to accounting for bad debts?

3) October 1, a company purchases a building for $160,000, $10,000 salvage value, and 15-year useful life. On October 1 of year 6, the asset book value is $110,000, and management determines the salvage value should be $25,000 instead of $10,000.

3A. What should depreciation be for the last 3 months of the year?

3B. Record depreciation for the Part A.

4) At the end of the year, the company reported: Total sales of $375,000 of which $67,500 were cash sales. Accounts receivable balance is $37,000. Allowance for Doubtful Accounts had a beginning credit balance of $3,025, and $2,325 were written off during the year.

4A. What is the balance in Allowance for Doubtful Accounts at the end of the year before adjusting entry?

4B. What is the adjusting entry if bad debts are estimated to be 2% of Accounts receivable?

4C. What is the adjusting entry if bad debts are estimated to be 3.5% of credit sales?