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As of January 1, Year 1. Farley Co had a credit balance of $540,000 in its allowance for uncollectible accounts. Based on experience, 2% of

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As of January 1, Year 1. Farley Co had a credit balance of $540,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's credit sales have been uncollectible. During Year 1. Farley wrote off $640,000 of accounts receivable. Credit sales for Year 1 were $20,000,000. In its December 31, Year 1, balance sheet, what amount will Farley report as allowance for uncollectible accounts? O $400,000 O $300,000 $940,000 O $500,000 O None of the above a Cutter Enterprises purchased equipment for $66.000 on January 1, Year 1. The equipment is expected to have a five-year life and a residual value of $3,000 Using the double-declining balance method, the book value at December 31, Year 2, would be: $23,760 $13,200 $24.960 $22.860. None of the above Amanda Company purchased a computer that cost $10,000. It had an estimated useful life of five years and a residual value of $1.000. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for 55.000 cash Which of the following statements correctly describes the computer sale? O Assets and stockholders' equity both increase by $5,000 Assets and stockholders' equity both decrease by $400 Assets and stockholders' equity both increase by $400. Assets decrease $5,000 and stockholders' equity is not affected. None of the above Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1.995,000. Harding paid 5560,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land. $592.000 Building. $1,760,000 and Equipment, 51,168,000. (Round percentages to two decimal places: 10.054 = 5%). What value will be recorded for the building? $280,000 O $1.760,000 O $997,500 $235.000 None of the above

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