Answer the following

1)An asset was purchased for $117,000 on January 1, Year 1 and originally estimated to have a useful life of 12 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $3,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

a.$24,041.67

b.$23,041.67

c.$25,041.67

d.$24,541.67

2)

The Accounts Receivable balance for River Corporation is $378,000 as of January 31, 2020. Before calculating and recording January 2020 Bad Debt Expense, the Allowance for Doubtful Accounts has a credit balance of $5,000. Credit sales for January 2020 are $4,200,000, and over the past several years, 2% of credit sales have proven uncollectible. An aging of River Corporations Accounts Receivable results in a $80,600 estimate for the Allowance for Doubtful Accounts as of January 31, 2020.

Part A: PERCENT OF SALES METHOD

Assume that River Corporation uses the percent of sales method to estimate future uncollectible accounts.

a. What adjusting entry does River make to record January 2020 Bad Debt Expense?

SalesBad Debt ExpenseCost of Goods SoldAllowance for Doubtful AccountsAccounts PayableAccounts Receivable	fill in the blank 2
Accounts PayableAccounts ReceivableSalesCost of Goods SoldBad Debt ExpenseAllowance for Doubtful Accounts		fill in the blank 4

b. What is the Accounts Receivable, net on Rivers January 31, 2020 Balance Sheet?

c. What is Bad Debt Expense on Rivers January 2020 Income Statement?

Part B: ANALYSIS OF RECEIVABLES METHOD

Assume that River Corporation instead uses the analysis of receivables method to estimate future uncollectible accounts.

a. What adjusting entry does River make to record January 2020 Bad Debt Expense?

Cost of Goods SoldSalesAllowance for Doubtful AccountsAccounts PayableAccounts ReceivableBad Debt Expense	fill in the blank 8
Accounts ReceivableSalesBad Debt ExpenseAllowance for Doubtful AccountsCost of Goods SoldAccounts Payable		fill in the blank 10

b. What is the Accounts Receivable, net on Rivers January 31, 2020 Balance Sheet?

c. What is Bad Debt Expense on Rivers January 2020 Income Statement?