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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts

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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 Bad Debt Expense 65,000 Allowance for Doubtful Accounts 65,000 Bad Debt Expense 22,000 Allowance for Doubtful Accounts 22,000 Bad Debt Expense 19,500 Allowance for Doubtful Accounts 19,500 A building with an appraisal value of $157,000 is made available at an offer price of $179,000. The purchaser acquires the property for $48,000 in cash, a 90-day note payable for $54,000, and a mortgage amounting to $84,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is Classify each of the following costs associated with long-lived assets as one of the following: Cost of installing new equipment Walkways to surround new 000 business location Cost assessed by city for paving a public street that borders land on which a new business location will be constructed Cost of grading and leveling land to be used for a new 1. Land improvements business site Fences around land at new 2. Buildings business location 3. Land Paved parking areas at new business location 4. Machinery and equipment Modifying a building purchased for new business location Cost of removing an existing building to ready land for use as a new business site Supplies (materials) used to test new equipment Outdoor lighting at new business location

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