lf the estimate for uncollectible accounts is made by taking 10% of gross accounts receivable, the amount of the bad debt expense for the period is: (a) $4,300 (b) $5,050. (c) $4,375 (d) $3,550. 20. Which of the following is true when accounts receivable are factored without recourse? (a) The transaction may be accounted for either as a secured borrowing (b) Th or as a sale, depending upon the substance of the transaction. e receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables. (o) The factor assumes the risk of collectibility and absorbs any credit (d) losses in collecting the receivables. The financing cost (interest expense) should be recognized ratably over the collection period of the receivables. On January 15, 20XI, a company adopted a plan to accumulate funds for environmental improvements beginning July 1,20X5, at an estimated cost of S1,500,000. The company plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 20X1. The amount of the annual deposit should be: (a) $323,206. (b) $473,206. (c) $430,187. (d) $293,824. 21. 22. A machine is purchased by making payments of $8,000 at the beginning of each ofthe next five years. The interest rate is 10%. At what amount should the machine be recorded on the date of purchase? (a) S30,326 (b) S33,359. (c) $48,841. (d $53,725 6