Question
1. Your company rents computers to local businesses and schools. You have 3,600 computers with a book value of $180,500. As a result of changing
1. Your company rents computers to local businesses and schools. You have 3,600 computers with a book value of $180,500. As a result of changing technology, your computers are more difficult to rent, so you must dramatically reduce the rental price, which causes a decrease in estimated future cash flows . The fair value of the computers is estimated at $138,000 due to their outdated technology. How much impairment loss your business must report?
2. What is the annual interest rate charged on a $61,000 3-month note receivable if total interest is $2,440?
3. Total doubtful accounts at the end of the year is estimated at $33,500 based on the age of accounts receivable. If the balance of the Allowance for Doubtful Accounts is a debit of $12,100 before adjustment, what is the current year bad debt expense?
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Intermediate Accounting Volume 2
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
8th Edition
1260881245, 9781260881240
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