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14. A company bought a new machine for $17,000 on January 1. The machine is expected to last 4 years and have a residual value
14. A company bought a new machine for $17,000 on January 1. The machine is expected to last 4 years and have a residual value of $2,000. If the company uses double-declining-balance method of depreciation, accumulated depreciation at the end of year 2 will ber a. $10,880 b. $11,250 c. $12,750 d. $15,000 15. Net accounts receivable is calculated as: a. accounts receivable less the bad-debt expense b. accounts receivable plus the allowance for doubtful accounts (ADA) c. accounts receivable less allowance for doubtful accounts (ADA) d. Sales less sales discounts 16. When the allowance method is used, the entry to write-off a customer's account a. increases the balance of the allowance for doubtful accounts (ADA) b. has no effect on net accounts receivable. c. decreases net accounts receivable. d. increases bad-debt expense. 17. The journal entry to record the uncollectible account expense under the direct write-off method is: a. Dr Allowance for Doubtful Accounts (ADA) XX Dr Uncollectible Account Expense Dr Uncollectible Account Expense None of the above. Cr Uncollectible Account Expense Cr Accounts Receivable Cr Allowance for Doubtful Accounts (ADA)XX. b. c. d
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