A company factored $49,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a: A company has net sales of $1,780,800 and average accounts receivable of $424,000. What is its accounts receivable turnover for the period? A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 361,000 debit Allowance for uncollectible accounts 560 credit Net sales 806,000 credit All sales are made on credit. Based on past experience, the company estimates 0.4% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? A company has $106,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $960 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $132,500, allowance for doubtful accounts of $945 (credit) and sales of $1,065,000. If uncollectible accounts are estimated to be 0.9% of sales, what is the amount of the bad debts expense adjusting entry? Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $180,000. The asset is expected to have a salvage value of $17,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be: Peavey Enterprises purchased a depreciable asset for $31,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,900, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of: A company had average total assets of $990,000. Its gross sales were $1,122,000 and its net sales were $905,000. The company's total asset turnover equals: A company purchased a delivery van for $17,000 with a salvage value of $2,600 on September 1, Year 1. It has an estimated useful life of 4 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1? Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 185,000 Real estate commissions 16,000 Legal fees 1,800 Expenses of clearing the land 3,000 Expenses to remove old building 2,000 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building? A company purchased a weaving machine for $281,850. The machine has a useful life of 8 years and a residual value of $15,500. It is estimated that the machine could produce 761,000 bolts of woven fabric over its useful life. In the first year, 110,500 bolts were produced. In the second year, production increased to 114,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year? Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $93,000. The machine's useful life is estimated to be 20 years, or 390,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 15,600 units of product. Determine the machines' second year depreciation under the straight-line method. Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $93,000. The machine's useful life is estimated to be 20 years, or 390,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 15,600 units of product. Determine the machines' second year depreciation under the units-of-production method. (Do not round intermediate calculations.) Riverboat Adventures pays $480,000 plus $10,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $51,000, a building appraised at $209,100, and paddleboats appraised at $249,900. Compute the cost that should be allocated to the building. Plant assets are defined as: