Based on the ratios below, the company's solvency has deteriorated from year one to year three: Debt to total assets. Times Interest earned Year Three Year Two Year One 50.0% 45.5% 40.3% 1.4 times 1.6 times 1.8 times. True False Question 4 (2 points) Below is an Allowance for Doubtful Accounts (AFDA) t-account. What is the most likely amount of bad debts expense for the period? $750 $400 $1550 $350 AFDA 400 1,200 Beginning 750 1,550 Payroll liabilities include the employer's share of Canada Pension Plan (CPP) contributions and Employment Insurance (El) premiums. True False Question 6 (2 points) Equipment with a cost of $6,300 and accumulated depreciation of $2,500 was sold for $3,100. This results in a loss of $700 that will be added in the operating section of the Statement of Cash Flows. True False Question 7 (2 points) During the year, Juniper Inc., who uses the allowance method, made an entry to write off a $2,000 uncollectible account. Before this entry was posted, the balance in accounts receivable was $40,000 and the balance in the allowance account was $3,500 (credit). The net realizable value of accounts receivable after the write off entry was: $40,000 $36,500 $38,500 $41,500