d. Establishing a payment period 0. Two methods of accounting for uncollectible accounts are the a. allowance method and the accrual method. b. allowance method and the net realizable method. c. direct write-off method and the accrual method. d. direct write-off method and the allowance method. 9. Bad Debt Expense is reported on the income statement as a. part of cost of goods sold. b. an expense subtracted from net sales to determine gross profit. c. an operating expense. d. a contra revenue account. 10. Depreciation is: a. The process of allocating the cost of an asset over its useful life b. The process of allocating the cost of an asset over its salvage life c. An expense for an asset that will be used up in one year d. Not an expense 11. Which of the following assets does not decline in service potential over the course of its useful life therefore, never depreciated? a. Equipment b. Furnishings c. Land d. Fixtures 12. The book value of an asset is equal to the a. Asset's fair value less its historical cost b. Blue book value relied on by secondary markets c. Replacement cost of the asset d. Asset's cost less accumulated depreciation 13. Which of the following is not considered an intangible asset? a. Goodwill b. Land c. A franchise d. A patent 14. Which of the following is not needed to calculate depreciation a Salvage value of asset b. Cost of asset c. Amount of loan taken to purchase the asset d. Useful life of asset ased for $10,000 on 1/1/14 that has a Calculate the depreciation expector for equipment purchased for $10.000 useful life of 5 years using the straight line method