15. AT&U Company has the following data for the year ended December 31, Year 1:

Sales (credit)	$2,500,000
Sales returns and allowances	50,000
Accounts receivable (December 31, Year 1)	640,000
Allowance for doubtful accounts
(before adjustment at December 31, Year 1)	20,000
Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1)	45,000

Refer to AT&U Company. If the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the allowance for doubtful accounts after the adjustment for bad debt expense?

	a.	$44,500
	b.	$45,000
	c.	$49,000
	d.	$69,000

16.Finicky Freight purchased a truck at the beginning of Year 1 for $80,000. The company decided to depreciate the truck over a five-year period using the double-declining-balance method. The company estimated the equipments salvage value at $8,000.

Refer to Finicky Freight. What is the amount of depreciation expense to be recorded for Year 1?

	a.	$14,400
	b.	$16,000
	c.	$28,800
	d.	$32,000