instructions at bottom

1 1 List only one term for each case. E12-2 Presented below are some business transactions that occurred during 2005 for Etheridge Identify the assumption, Co. principle, or constraint that has 1. An account receivable has been deemed to be a bad debt. The following entry was made. been violated: prepare correc entries Allowance for Doubtful Accounts 10,000 (SO 4, 5, 6), AN Accounts Receivable 10,000 1. Na violation 2. The president of Etheridge Co., Ben Manion, purchased a truck for personal use and charged 2 Economic entity it to his expense account. The following entry was made. Travel Expense I 18,000 Cash 18,000 3. An electric pencil sharpener costing $25 is being depreciated over 5 years. The following 3. Matching and materiality entry was made Depreciatun Expense--Pencil Sharpener 5 Accumulated Depreciation--Pencil Sharpener 4 Cost principle 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 90.000 Equipment 65,000 Cash 25.000 Gain 5. Oost Dicile 5. Merchandise inventory with a cost of $208.000 is reported at its market value of $260.000, The following entry was made 52.000 Merchandise Inventory 52.000 Gain Instructions In each of the situations above, identify the assumption, principle, or constraint that has been violated. if any. Discuss the appropriateness of the journal entries and give the correct journal entry if necessary straints discussed in this