Q2. On January 1, 2001, equipment was purchased for $95,000 cash. The equipment is expected produce 100,000 units during its useful life and has an estimated salvage value of $15,000. Units produced from 2011 to 2013 were respectively 30000, 45000, and 25000. What is the amount of depreciation expense and Book Value of the assets each year? 1. Which of the following is true about Bank Reconciliation statement. a. Reconcile bank statement balance to the adjusted bank balance. b. Reconcile book balance to the adjusted book balance. c. The adjusted balances should be equal. d. All the above 2. Liquidity means: a. How easily an asset can be converted into cash to be used to pay for services or obligations. b. How easily an asset cannot be converted into cash to be used to pay for services or obligations, c. How easily a liability can be paid off. d. None of the above. 3. XLtd has credit sales of $1,250,000 in 2011. Management estimates 1% of credit sales will eventually prove uncollectible. What is bad debts expense for 2011? a. 7,500 b. 7,000 c. 12,500 d. 1,250 4. On March 1, 2011, Matrix, Inc. purchased a copier for $15,000 from Office Supplies, Inc. Matrix gave Office Supplies a 10% note due in 90 days in payment for the copier. The interest is: a. 375 b. 3750 c. 1500 d. 270 A company has net sales of $870,000 and average accounts receivable of $174,000. What is its accounts receivable turnover for the period? A. 0.20 B. 5.00 C. 20.0 D. 73.0