A company pays $75,500 cash for a truck expected to last six years and have a $14,000 salvage value. The following costs relate to the truck. January 1 Paid $5,000 cash for a new component that increased the truck's productivity. March 1 Paid \$2,000 cash for minor repairs (broken tailgate) necessary to keep the truck working well. November 7 Paid $9,000 cash for significant repairs to increase the useful life of the truck from six to nine years. Prepare journal entries to record these transactions. At December 31, a company reports the following results for its calendar year. Its year-end unadjusted trial balance includes the following items. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be to be 2.5% of credit sales