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[The following information applies to the questions displayed below.) At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick

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[The following information applies to the questions displayed below.) At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Installation costs Renovation costs prior to use Machine A $ 11,000 500 2,500 Machine B $ 30,000 1,000 1,000 Machine C $ 8,000 500 1,500 By the end of the first year, each machine had been operating 4,800 hours. Required: 1. Compute the cost of each machine. Total Cost Machine A Machine B Machine C 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Machine A B ESTIMATES Residual Life Value 5 years $1,000 60,000 hours 2,000 4 years 1,500 Depreciation Method Straight-line Units-of-production Double-declining-balance Journal entry worksheet 1 > Record the depreciation expense for year 1. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Flyer Company has provided the following information prior to any year-end bad debt adjustment: . Cash sales, $150,000 Credit sales, $450,000 Selling and administrative expenses, $110,000 Sales returns and allowances, $30,000 . Gross profit, $490,000 - Accounts receivable, $110,000 Sales discounts, $14,000 Allowance for doubtful accounts credit balance, $1,200 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. How much is Flyer's bad debt expense? Multiple Choice $7.950. $6,750. $5,550. $7,800

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