Exercise 13-23B Determining the book value of assets The following information was drawn from the accounting records of Schafer Company: 1. On January 1, Year 1 , Schafer paid $72,000 cash to purchase a truck. The truck had a seven-year useful life and a $9,000 salvage value. 2. As of December 31 , Year 1 , Schafer Company had an $84,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account. Sales on account for Year 1 amounted to $450,000. Schafer estimates that 3 percent of credit sales will be uncollectible. Required a. Record the year-end adjusting entry for depreciation expense on the truck in Taccounts. b. Determine the book value of the truck that will appear on the December 31 , Year 1 , balance sheet. c. Record the yearend adjusting entry of uncollectible accounts expense. d. Determine the net realizable value of receivables that will appear on the December 31 , Year 1 . balance sheet. EXERCISE 13-23B b. Truck Accumulated Depreciation Book Value c. Schafer Company T-Accounts * $ Credit Sales x.03 Estimated Uncollectible =$ Expense Recognized d. Accounts Receivable Allowance for Doubtful Accounts Book Value