Question 13. Each part counts one point, except that part d counts three points. Part a. Exeter Company determines that it will not be able to collect $45,000 that Fillmore Company owes it. Assume that Exeter Company uses the direct write-off method of accounting for bad debts. Make the appropriate journal entry. If no journal entry should be made, explicitly say that no journal entry should be made. Part b. Exeter Company determines that it will not be able to collect $45,000 that Fillmore Company owes it. Assume that Exeter Company uses the allowance method of accounting for bad debts. Make the appropriate journal entry. If no journal entry should be made, explicitly say that no journal entry should be made Part c. When Hilltop Company opened the mail, there was a check for $900 from a customer. Hilltop uses the allowance method of accounting for bad debts. Hilltop had previously written off that customer account. One of the employees went to the bank (by coincidence, the same bank the customer uses) and was told that yes, there is money in the account to cover the checkso the employee deposited the $900 check. Make the appropriate journal entry. If no journal entry should be made, explicitly say that no journal entry should be made Part d. This part is worth three points. The company uses the aging of accounts receivable to establish how much of an allowance for bad debts it should show on the books. Given the information on the separate document, make the appropriate journal entry to record bad debts expense for the period. Question 14. Each part counts one point. Use this information for each of parts a, b, and c. The company you work for bought a new machine at the beginning of this fiscal year. Somebody forgot to record depreciation each month, so you have to calculate the annual depreciation and make the correct journal entry. The machine cost $53,000, has an estimated salvage value of $3,000, and is expected to last five years. Part a. Do the computations and make the correct entry if the company uses the straight-line method of depreciation. Part b. Do the computations and make the correct entry if the company uses the double declining balance method of depreciation. Part c. Do the computations and make the correct entry if the company uses the units of output method of depreciation. The machine is expected to produce 25,000 units over the course of its useful life. It produced 3,000 units this year.