The data for a fixed asset owned by Company H is as follows: Original cost $223,000 Useful life 7 years Residual value $40,000 The journal entry to record the assets annual depreciation under the straight-line method is:

If CheapCo estimates bad debt expense as a percentage of its $159,000 credit sales, estimates 3% for this year and has an Allowance for Doubtful Accounts with a credit balance of $1,230, how does it record bad debt expense?

Company A has a fixed asset with an original cost of $300,000, a residual value of $25,000 and a useful life of 10 years. The company also has land with an original cost of $1,000,000. Under the straight-line method, the journal entry to record the annual depreciation expense is: