Identify the assumption, principle, or constraint that has been violated; prepare correct entries. (SO 4, 5, 6) Instructions For each of the above, list the assumption, principle, or constraint that has been violated, if any. List only one term for each case. EAP-2 Presented below are some business transactions that occurred during 2011 for Etheridge Co. 1. An account receivable has been deemed to be a bad debt. The following entry was made. Allowance for Doubtful Accounts Accounts Receivable 10,000 10,000 2. The president of Etheridge Co., Ben Manion, purchased a truck for personal use and charged it to his expense account. The following entry was made. Travel Expense Cash 18,000 18,000 3. An electric pencil sharpener costing $25 is being depreciated over 5 years. The following en- try was made. Depreciation Expense-Pencil Sharpener Accumulated Depreciation-Pencil Sharpener | 5 5 4. Equipment worth $90,000 was acquired at a cost of $65,000 from a company that had water damage in a flood. The following entry was made. Equipment Cash Gain 90,000 65,000 25,000 5. Merchandise inventory with a cost of $208,000 is reported at its market value of $260,000. The following entry was made. Merchandise Inventory Gain 52,000 | 52,000 Exercises AP-23