On Feb. 1, 2015, a company purchased a mine for $80 million that is estimated to have 250,000 tones of ore and a residual value of $3 million. The cost of restoration at the end of useful life is estmiated at $8 million. In 2015, 30,000 tones of ore were extracted.

1. Calculate the amount of amortization that should be reorded on December 31, 2015.
2. Calculate the amount of restoration liability.
3. Show jounral entry for December 31, 2015.

On January 31 the firm has A/R in the amount of $750,000. The allowance for doubtful accounts had a credit balance of $5,250. The controller estimated that uncollectible accounts expense would be amount to one-half of 1% of the $4,500,000 of net sales made during January. This estimate was entered in the accounts by adjusting entry on Januray 31.

Prepare the jounral entries in the for Januray 31.