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On November 1, 2019, Bradley Company receives $7,000 cash in advance and promises to provide five months of services. Bradley records this on November 1
On November 1, 2019, Bradley Company receives $7,000 cash in advance and promises to provide five months of services. Bradley records this on November 1 by debiting Cash $7,000 and crediting Unearned Service Revenue $7,000. Bradley begins providing the services immediately. In the December 31, 2019 adjusting entry, Bradley will: Debit Service Revenue $2,800, credit Unearned Service Revenue $2,800 Debit Unearned Service Revenue $1,400, credit Service Revenue $1,400 Debit Unearned Service Revenue $7,000, credit Cash $7,000 Debit Unearned Service Revenue $2,800, credit Service Revenue $2,800 On January 1, 2019, a company purchases equipment for $31,000. The company uses the straight-line depreciation method and estimates that the equipment will have a useful life of three years and a salvage value of $1,000. The company's annual accounting period ends on December 31. At the beginning of the equipment's third year, the estimated number of years remaining in its useful life changes from one to two years and its estimate of salvage value changes from $1,000 to $750. How much Depreciation Expense will the company record for each of the final two years? $5,125 $5.000 $10,000 $5,500 On November 9, Allen Company purchased merchandise from Lambert Company with an invoice price of $14,000 on credit terms of 2/10,n/30. On November 12, Allen returned $3,000 of the merchandise to Lambert. On November 19, Allen paid the amount due to Lambert. How much was the discount Allen received by paying within the discount period? $220 o $280 $1,400 $1,100
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