27. A factory machine was purchased for $70,000 on January 1, 2014. It was estimated that it would have a $14,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. If the actual number of machine hours ran in 2014 was 4,000 hours and the company uses the units- of-activity method of depreciation, the amount of depreciation expense for 2014 would be A) $11,200. B) $5,600. C) $14,000 D) $7,000. 28. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accounts is S11,000 debit before adjustment what is the balance after adjustment? A) $34,000 B) $45,000 C) $56,000 D) $11,000 29. At May 1, 2014, Heineken Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows: 400 units at $7 600 units at $8 The company sold 1,000 units during the month for $12 per unit. Heineken uses the average cost method. The average cost per unit for May is A) $7.50. B) $7.60. C) $7.00. D) $8.00. 30. Bonds with a face value of $300,000 and a quoted price of 102, have a selling price of $300,675. B) A) $360,675. C) $306,075 D) $306,750 31. Liabilities are generally classified on a balance sheet as A) small liabilities and large liabilities. B) present liabilities and future liabilities. C) tangible liabilities and intangible liabilities. D) current liabilities and long-term liabilities. Version 2 Page 7