A plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. The current year's Depreciation Expense is $10,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $50,000. The remaining useful life of the plant asset is

Select one:

a. 5 years.

b. 3 years.

c. 8 years.

d. 10 years. _____________________________________________________________________________________________________________________________

Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage-of-sales basis. If Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance after adjustment?

Select one:

a. $ 27,000.

b. $ 31,000.

c. $ 23,000.

d. $ 15,000