Answer the following questions thanks..

1. Why do companies carry long term assets (property, plant & equipment/ fixed assets) on the balance sheet for longer than one year? How is this different than an operating expense, such as salaries, maintenance expenses, or office supplies? Why are those items expensed in one accounting period?

2.What two methods can be used to journalize uncollectable accounts receivables? Which method gives the balance sheet a fair presentation to external users? Which method improves matching of expenses with revenues? Which method would be used to write off a specific account or for immaterial uncollectable account receivables?

3.

Methods of Depreciation:

MMS Corporation purchased a machine to manufacture widgets on 1/1/2015. The machine cost $50,000.00. Transportation was FOB shipping point and cost $1,000.00. Assembly costs were $2,000.00. MMS Corp expects to use the machine for 10 years and manufacture a total of 85,000 widgets over its useful life. MMS plans on manufacturing 7,000 widgets in the first year of operation. At the end of ten years, the machine is expected to have a salvage value of $5,000.00.

What is the amount of depreciation expense at the end of the first year (12/31/15) with each method?

* Straight-line

* Accelerated (double declining)

* Units of production /activity