On January 2015, Bijous Manufacturing purchased a truck for $298,000 from the Smith Corporation. The truck had a useful life of 12 years or 80,000 miles and a residual value of $10,000.

1. What is the journal entry to record the depreciation expense in 2017 using the straight-line method? (10 pts)

	Accounts	Debit	Credit

2. In 2015 and 2016 the truck was used for 10,000 miles an12,000 miles respectively. Prepare the journal entries to record the depreciation expense for both of those years using the units of production. (15 pts)

	Accounts	Debit	Credit

3. What is the depreciation expense in 2016 using the double declining balance method? (15 pts)

Peachy Smiles (PS) sells Invisalign braces to dental clinics in Boston. In 2019 their sales $1,000,000 of which $600,000 was on account. From experience PS knows that 3% of the receivables will be uncollectable. Their allowance for bad debt had a $10,000 beginning credit balance. However, PS wrote off $6,000 of their receivables.

1. What is the journal entry to write off the uncollectible receivables? (15 pts)

	Accounts	Debit	Credit

2. What is the journal entry to record the bad expense after the write off of the receivables? (15 pts)

	Accounts	Debit	Credit

TDC Inc. has the following bank information for the month ending June 30, 2020.

Balance as per the bank statement is $11,040.

Balance as per books is $10,000.

Check #771 for $1,100 and check #779 for $1,000 were not shown on the June 30 bank statement.

A deposit in transit of $2,000 had not been received by the bank when the bank statement

was generated.

A bank debit memo indicated an NSF check for $85 written by Maddie Wolfe to

Ashley Company on June 13.

A bank credit memo indicated a note collected by the bank of $990 and interest revenue

of $55 on June 20.

The bank statement indicated service charges of $20.

Prepare bank reconciliation for TDC Inc. for June 30, 2020. (20 pts)

Bank	Book

Prepare the journal entries to adjust ABCs books (10 pts)

Date	Accounts	Debit	Credit