8) At year end, a business has an accounts receivable balance of $245,000. The allowance for doubtful accounts balance is $5,750 debit, on the same date. Management estimates uncollectible accounts to be 8% of accounts receivable. Bad debt expense for the year is A) $18,740 B) $19,600 C) $13,850 D) $25,350 E) $29,750 9) Due to the pandemic, a Canadian sports clothing store reported large losses during 2020. The owner realizes that he lacks the cash to cover a $50,000 loan payment in early 2021. He may have to declare bankruptcy and close the business. Which accounting assumption or concept is most relevant to valuing business assets at year end? A) going concern assumption B) confirmatory value C) faithful representation D) materiality E) monetary unit concept 10) During the current year, The Supply Co. Inc.'s total liabilities decreased by $26,700 and shareholder's equity increased by $4,150. By what amount and in what direction did Sue's total assets change during the same time period? A) $50,850 decrease. B) $30,850 increase. C) $22,550 decrease. D) $22,550 increase. 11) On April 1, a company acquired equipment at the cost of $325,400. The equipment is expected to have a twelve-year life and a residual value of $52,100. The company's year-end is November 30. If the equipment is depreciated using the double diminishing balance method, how much depreciation expense is recorded for the first year? (Tip: Keep all decimal places in your calculations and round the final number to the nearest dollar). (3 marks) A) $27,117 B) $54,233 C) $48,883 D) $31,636 E) $36,156 12) If the market rate of interest is 6%, a $10,000, 10-year bond with a coupon interest rate of 8 would issue at an amount: A) equal to the face value (par). B) less than face value (discount). C) greater than face value (premium). D) that cannot be determined. 12 12