QUESTION 48 At the beginning of April, BIG Inc. had a $50.000 debit balance in accounts receivable and a $1.000 credit balance in the allowance for bad debe During the month of April, BIG recognized $200.000 of sales revenue which included $125.000 on account to customers. BIG collected S75.000 cash from customers for merchandise that was initially sold on account during the month. They also had to write off a $3.000 account from a bankrupt customer. Using the percentage of sales method how much is bad debt expense for the month of April assuming o f all credit sales will be uncollectible? O $3.000 $12.000 O1$7.500 O $4500 QUESTION 45 Which of the following should not be included in the acquisition cost for a long-lived asset? O Purchase price of the asset O Routine maintenance costs years after acquisition O Delivery and installation O Property title fee QUESTION 5 On April 2. 2018. a piece of equipment was purchased for $65.000. They plan to use the equipment to make their product for the next years and the equipment will have a $5,000 residual value at the end of its useful life. The equipment is estimated to produce 150.000 units in total Using the double declining balance method what is the depreciation expense for 2018? O $10.000 O 58250 O $7500 O $11.000 QUESTION 6 A warehouse building was originally purchased in 2016 for $150,000. The company sold the warehouse on March 20, 2020 for $160.000. To date, it! had accumulated depreciation of S15.000. Which of the following is true on the date of disposition? The building had a fair market value of $135.000 The company should record again of $10,000 O The building's net book value of $150,000 The company should record a gain of $25.000 QUESTION 7 Bethel Company purchased Foster Corporation for $15 million cash. Foster had assets valued at $20 million and debts that would cott S17 million to pay off today. How much goodwill does this transaction generate for Bethel Company? O $15 million O $5 million O $3 million O $12 million QUESTION 8 At the beginning of April, BIG Inc, had a $50.000 debit balance in accounts receivable and a $1,000 credit balance in the allowance for bad debt During the month of April BIG recognized S200,000 of sales revenue, which included $125.000 on account to customers. BIG collected $75.000 cash from customers for merchandise that was initially sold on account during the month. They also had to write off a $3.000 account from a bankrupt customer. Using the aging method what is the ending balance in Accounts Receivable at the end of April O $50,000 O $75.000 O $95.000 O $100.000 QUESTION 14 On April 2. 2018, a piece of equipment was purchased for $55.000. They plan to use the equipment to make their product for the next 10 years and the equipment will have a 55,000 residual value at the end of its useful life. The equipment is estimated to produce 100.000 units in totalt produced 15.000 units in 2018 and 12.000 units in 2019 Using the units of production method what is the depreciation expense for 2018? O $6.000 $8.250 O $7.500 O $6.600