QUESTION $15$

Assume CometConenction uses unit$-$of$-$production method to depreciate the building. At the beginning of $2017,$ the firm increased its estimate of salvage

value due to newly employed maintenance pro$$edure and technique. Which of the following statement is true?

A$.$ This change in accounting estimate increases $2017$ depreciation but does not affect $2017$ net income

B$.$ This change in accounting estimate increases $2017$ depreciation but decreases $2017$ net income.

C$.$ This change in accounting estimate does not affect either $2017$ depreciation or $2017$ net income

D$.$ This change in accounting estimate decreases $2017$ depreciation and increases $2017$ net income

QUESTION $16$

Purple Inc. began $2021$ with a $$10,000$ debit balance in Accounts Receivable and a $$1,000$ credit balance in its Allowance for Doubtful Accounts account. It

sold $2$ machines during the $2021$ fiscal year on credit for $$29,700$ each. During the year, $(1)$ one of the two customers paid the balance while the other has not

paid as of December $31$; and $(2)$ Purple Inc. wrote$-$off $$400$ of its Accounts Receivable as uncollectible. Assuming these are the only transactions that occurred

during the year, and that Purple Inc. estimates $5\%$ of year$-$end Accounts Receivable to be uncollectible, what amount will they record as bad debt expense in

$2021?$

A$.$ $$600$

B$.$ $$1,365$

C$.$ $$965$

D$.$ $$1,965$