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14) On December 31 of the current year, the unadjusted trial balance of a company using4 the percent of receivables method to estimate bad debt

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14) On December 31 of the current year, the unadjusted trial balance of a company using4 the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $95,250; Allowance for Doubtful Accounts credit balance of $921. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible? A) S5,770. B)S5,715. ,794. D)S5,660. E6,636 15) A company purchased a tract of land for its natural resources at a cost of $1,000,000. It 15) expects to harvest 5,000,000 board feet of timber from this land. The salvage value of per board foot of timber is: D) S0.75 the land is expected to be $200,000. The depletion expense per A) $0.16. B) $0.04 E) $0.20 C) $0.24. owns machinery that cost $87,000 with accumulated depreciation of $40,000. 16) The company sells the machinery for eash of $42,000. The journal entry to record the sale would include: A) A credit to Gain on Sale of $2,000. B) A credit to Accumulated Depreciation of $40,000. C) A debit to Accumulated Depreciation of $47,000. D) A debit to Cash of $42,000. E) A credit to Machinery of $47,000. 17) 17) One characteristic of plant assets is that they are A) Current assets. B) Intangible. C) Long-term investments D) Natural resources. E) Used in operations. 18) Minor Company installs a machine in its factory at the beginning of the year at a cost of 18) $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method. A) $54,000. B)66,000. C) $25,800.D) $48,000. E)24,000

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