Fa#201 7: Chapter 8 & 9 Quit-version B 1 Manning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance s S500.000 and credit sales are $2,500,000. Management estimates that 5% of accounts recevabie will be uncollectible. What adjusting entry will Maneing Company make if the Allowance for credit balance of $8,000 before adjustment? 9,000 25,000 7,000 25,000 A Bad Debt Expense Bad Debt Expense C Bad Debt Expense D Bad Debe Expense Allowance for Doubrful Accounts Accounts Receivable Allowance for Doubcful Accounts Alowance for Doubtful Accounts 9,000 25,000 17,000 25,000 elis a plant asset that originaly cost $125,000 for $40,000on December 31,2010 The accumuiated account had a balance of $s0,000 after the current year's depreciasion of $12,500 had been recorded The company should recognize a A $85,000 loss on disposal $35,000 loss on disposal C 8 $35,000, gain on disposal $40,000 gain on disposal D 3 In 2016 the Fitzu Co. had net credit sales of $1,500,000. On January 1, 2016, Allowance for Doubtful Accounts had credit balance of $25,000. During 2016, 535,000 of uncollectible accounts receivable indicates that the allowance should be 6% of the balance in receivables (percentage of recevable bass. were written off. Past experience f the accounts recelvable balance at December 31 was $300,000 what is the required adjustment to the Alowance for Doubtful Accounts at December 31, 2016 A $43,000 B $28,000 C $41,200 D $35,000 4 You have just recelved notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to A debit Allowance for Doubtful Accounts and credit Accounts Receivable. 8 debit Allowance for Doubtful Accounts and credit Bad Debt Expense. C debit Bad Debt Expense and credit Allowance for Doubtful Accounts. D debit Bad Debt Expense and credit Accounts Receivable. 5 A company purchased factory equipment for $200,000.Itis estimated that the equipment will have a $25,000 salvage value at the end of its estimated ,S year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be A $80,000 B $70,000 C $42,000 D $48,000