During December, McComb Co. had net credit sales of $1,000,000. On December 1, 2017, the Allowance for Doubtful Accounts had a debit balance of $2,000. Experience indicates that the ending balance in the allowance for doubtful accounts should be 5% of net credit sales (percentage-of-sales basis). If the accounts receivable balance at December 31 was $100,000, what amount should be reported as bad debt expense for the year? $48,000 $50,000 $2,000 $52,000 QUESTION 10 Troy Inc. purchased equipment on December 1, 2018 with a cost of $100,000 has an estimated salvage value of $20,000 and an estimated life of 8 years. It is to be depreciated by the straight-line method. What is the amount of depreciation for the second full year? $20,000 $10,000 $1,041 $9,167 $12,500 Walt Disney World wants to ensure that ticket holders do not transfer tickets to other people. They try and prevent this by requiring a fingerprint scan when entering the park. What type of internal control is Walt Disney World using? Physical controls Establishment of responsibility Human resource controls Segregation of duties QUESTION 12 On November 1, 2017, Kuna Company purchased the copyright to Ortiz Licence Tutorials for $24,000. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be $24,000 $6,000 $1,000 $500 QUESTION 15 The receivable that is usually evidenced by a formal instrument of credit is a(n) account receivable note receivable other receivable investment QUESTION 16 Wilbur Company sells a plant asset that originally cost $200,000 for $200,000 on December 31, 2018. The accumulated depreciation account had a balance of $75,000 before the current year's depreciation of $35,000 had been recorded. The company should recognize a $90,000 gain $110,000 gain $110,000 loss no gain or loss