The following information is from the 2019 records of Fast Lane Racing Gear:

Accounts receivable, December 31, 2019 $40,000 (debit)

Allowance for Bad Debts, December 31, 2019

prior to adjustment 1700 (debit)

Net credit sales for 2019 178,000

Accounts written off as uncollectible during 2019 17,000

Cash sales during 2019 32,000

Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $7000of accounts receivable will be uncollectible. Calculate the ending balance of Allowance for Bad Debts, after the adjustment for bad debts expense, at December 31, 2019.

A) $10,400

B) $8000

C) $5340

D) $7000

Which of the following asset categories would include the cost of clearing land and removing unwanted buildings?

A) land

B) buildings

C) machinery and equipment

D) land improvements