Question 6 (2 points) Dallas Corporation purchases a used delivery truck for $35,000. The company paid $1800 so that the truck could pass an Ontario motor vehicle safety check. The motor vehicle licence is $160. Annual insurance is $1,700. At what amount does Dallas record the cost of the new truck? $35,000 $35,160 $36,800 $36,960 Question 7 (2 points) Number of days outstanding Accounts Receivable Estimated Percentage Uncollectible 0-30 days $300,000 4% 31-60 days $180,000 10% 61-90 days $150,000 20% over 90 days $60,000 40% $690,000 Assume that the Allowance for doubtful Accounts has an unadjusted Credit balance of $4,000, the journal entry to record the bad debts expense would be; Bad Debts Expense Dr $88,000 Cr Allowance for Doubtful Accounts Bad Debts Expense $88,000 Cr Dr $84,000 Allowance for Doubtful Accounts Bad Debts Expense $84,000 Cr Dr $80,000 Allowance for Doubtful Accounts Bad Debts Expense $80,000 Cr Allowance for Doubtful Accounts Dr $69,000 $69,000 Question 8 (2 points) Number of days outstanding Accounts Receivable Estimated Percentage Uncollectible 0-30 days $300,000 4% 31-60 days $180,000 10% 61-90 days $150,000 20% over 90 days $60,000 40% $690,000 Assume that the Allowance for doubtful Accounts has an unadjusted Debit balance of $4,000, the journal entry to record the bad debts expense would be; Bad Debts Expense Allowance for Doubtful Accounts $69,000 Bad Debts Expense $69,000 Allowance for Doubtful Accounts $88,000 Bad Debts Expense $88,000 Allowance for Doubtful Accounts $80,000 Bad Debts Expense $80,000 Allowance for Doubtful Accounts $84,000 $84,000