6_Jefferson Company purchased equipment on January 1, 2017. The equipment cost $60,000 and has an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the equipment for 2018 under the double-declining-balance method?

Select one:

a. $11,250.

b. $6,500.

c. The answer does not exist

d. $6,562

e. $15,000.

______________

7_ Ericsson Company has a credit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Ericsson estimates that $60,000 of its receivables are uncollectible. The amount of bad debt expense which should be reported for the year is:

Select one:

a. $5,000.

b. $60,000.

c. $65,000.

d. $55,000.

e. The answer does not exist

___________________

8_ A cash register tape shows cash sales of $3,000 and sales taxes of $240. The journal entry to record this information is

Select one:

a.

Cash............................................... 3,240

Sales Revenue.................................................... 3,000

Sales Tax Revenue.................................................. 240

b.

Cash................................................. 3,240

Sales Taxes Payable................................... 240

Sales Revenue....................................... 3,000

c.

Cash..................................................... 3,000

Sales Tax Expense.....................................240

Sales Revenue................................................ 3,240

d.

Cash............................................... 3,240

Sales Revenue 3,240

e. The answer does not exist

____________________

9_ A current liability is a debt that can reasonably be expected to be paid

Select one:

a. The answer does not exist

b. between 6 months and 18 months.

c. out of cash currently on hand.

d. within one year or the operating cycle, whichever is longer.

e. out of currently recognized revenues.

____________

10_ The declining-balance method of depreciation produces

Select one:

a. a decreasing depreciation expense each period.

b. an increasing depreciation expense each period.

c. The answer does not exist

d. a constant amount of depreciation expense each period.

e. a declining percentage rate each period.