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At the end of the current year, Accounts Receivable has a balance of $142,250; Allowance for Doubtful Accounts has a debit balance of $3,292; and
At the end of the current year, Accounts Receivable has a balance of $142,250; Allowance for Doubtful Accounts has a debit balance of $3,292; and sales for the year total $1,068,000. Bad debt expense is estimated at 3% of sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense, Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. A new machine with a purchase price of $87,408.00, with transportation costs of $7,893.00, installation costs of $5,774.00, and special acquisition fees of $2,093.00. Calculate a cost basis. Select the correct answer $95,275,00 $103,168.00 $93,182.00 $87,408.00 Copy equipment was acquired at the beginning of the year at a cost of $68,060 that has an estimated residual value of $6,200 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,031,000 copies. This year, 200,000 copies were made. a. Determine the depreciable cost. b. Determine the depreciation rate. per copy c. Determine the units-of-output depreciation for the year
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