ACCOUNTING 1010 TEST IV CHAPTERS 8-11 Page 2 If the beginning of the year 1/01/2018 balance of the Allowance for Doubtful Accounts was a credit of $20,000 and the 12/31/2018 balance before adjustment was a debit of $1.200, evalate the adequacy of the January 15 beginning balance of the account. A. The beginning 7 balance of the allowance account was adequate to cover the accounts receivables charged off as uncollectable in 2018. B. The beginning balance of the allowance account was not adequate to cover the accounts receivable charged off as uncollectable in 2018. 8 The formula for calculating interest on notes receivable is (X A. B. C. D. multiply / divide) Face Amount X Interest Rate X Days the note is held X Days in a Year Face Amount X Interest Rate X Days the note is held / Days in a Year Face Amount X Interest Dollar Amount X Days in a Year Face Amount X Days the note is held / Days in a Year 9 Which one of the following statements is true? A. B. C. D. Using the units-of- production method, it is possible to depreciate more than the depreciable cost Regardless of the depreciation method, the amount of total depreciation expense during the asset's life will be the same Using the straight-line method, the amount of depreciation expense will vary each year Using the double-declining-balance depreciation method will result in depreciation expense being the same amount each year The depreciation method that does not subtract residual value when calculating the first year's depreciation expense is: A. double declining balance B. straight-line C. units of production 10. When an asset is purchased during the year, the depreciation method that does not require consideration for the partial year is: A. declining balance B. straight-line C. units of production I1. When a company discards equipment that is fully depreciated, this transaction would be recorded with which one of the following entries? A. debit Depreciation Expense; credit Accumulated Depreciation B. debit Accumulated Depreciation; credit Equipment C. debit Equipment; credit Accumulated Depreciation 12