Problem 2 (9 points) A piece of equipment costs $20,000 and has a residal (salvage value) of zero. It has a life of 5 years. A.) What is the depreciation Expense for year 1? $ 4,000.00 What is the depreciation Expense for year 2? $ 4,000.00 What is Accumulated depreciation at the end of year 2? $ 8,000.00 B.) If we sold the piece of equipment at the end of year 2, what would be the journal entry? The selling price is $16,000. Debit Credit Problem 3 (8 points) We sold ABC company merchandise on account for $24,000 They were unable to pay it so we changed it to a notes receivable for 30 days at 7%. A) What is the journal entry to change the AR to a NR Debit Credit B) What is the journal entry to show receiving the payment for the note receivable and interest? Debit Credit