The following information is from the records of H2O Events for Year 1: Credit sales during the year $2,400,000 Accounts receivable (December 31, Year 1) 410,000 Allowance for doubtful accounts (December 31, Year 55,000 1) Bad debt expense for the year 70,000 Refer to H2O Events. What are the effects on the accounting equation when the company makes the adjustment to record bad debt expense using the allowance method? Assets and shareholders' equity decrease. Assets decrease and shareholders' equity increases. Assets increase and shareholders' equity decreases. O Assets increase and liabilities decrease. D Question 39 Why is land NOT depreciated? O because it is an intangible asset O because it is expected to provide future benefits for a company for an indefinite period of time because it has a useful life that is limited to the period of time a company is in business O because it appreciates in value 1 pts Equipment purchased at the beginning of Year 1 for $200,000 with residual value of $20,000 is being depreciated over a five-year period using the double-declining-balance method. Which of the following statements is correct concerning the financial statements at December 31, Year 1? The accumulated depreciation account balance is now $80,000. O The book value of the equipment is now $80,000. O Depreciation expense for Year 1 is $72,000. The equipment account now has a balance of $120,000