55.Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 4 % of net credit sales. If net credit sales are $600,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a. $24,500 b. $23,500 c. $24,000 d. cannot be determined 56.On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss on this transaction? a. Gain of $30,000 b. Loss of $30,000 c. No gain or loss d. $45,000 gain 57.Machinery was purchased on January 1, 2010 for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining balance depreciation for 20111 (the second year) would be a. $10,929 b. $6,000 $10,500 d. $10,408 58. If the balance in the allowance account equals $20,000 and accounts receivable has a $100,000 balance and bad debts expense is $15,000, the net realizable value of accounts receivables is: a. $80,000 b. $20,000 c. $100,000 d. none of the above For problems 59-61: On Jan. 1, X Company reacquired 22,500 of its own common shares at $31 per share. On April 20, the company resold 12,800 of the reacquired shares at $40 per share. On Oct. 4, they sold the remaining shares at $25 per share. 59. The journal entry to record the Jan 1 transaction included a: a. credit to treasury stock b debit to treasury stock c. debit to cash d. both a and c