Michael's Muffins has a fiscal period ending on December 31. On January 1, 2020, the company purchased equipment for $22,000. It is estimated that the equipment will remain useful for 5 years, or for 50,000 machine hours. After its useful life, it is expected that the equipment will still have a value of $2,000. In 2020, the equipment was used for 12,000 machine hours. Calculate depreciation expense for 2020 using the double-declining-balance method.

customer QUESTION 1 Which of the following is a type of business that sels Service business Merchandising business Both service and merchandising businesses Neither service or merchandising businesses Verne's Violins uses the allowance method to account for uncollectible accounts. As of December 31, 2019, the company has a $5,000 balance in Accounts Receivable, and a $30 credit balance in Allowance for Bad Debts. The company made $20,000 of credit sales (sales on account) during the 2019 fiscal year. Based on past experience, the company's accountants estimate that 1% of credit sales will be uncollectible. They also estimate that 3% of current Accounts Receivable will be uncollectible. How much should the company record in bad debts expense for 2019 using the percent- of-sales method? $230 $200 $170 $150