Thomas Inc. purchased equipment on April 1, 2018 with a cost of $164,000 has an estimated salvage value of $20,000 and an estimated life of 12 years. It is to be depreciated by the straight-line method. What is the amount of depreciation to be recorded in 2018 (the year it is placed in service)?

$12,000

$9,000

$0

$3,000

During December, McComb Co. had net credit sales of $1,000,000. On December 1, 2017, the Allowance for Doubtful Accounts had a credit balance of $2,000. Experience indicates that the ending balance in the allowance for doubtful accounts should be 5% of receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $100,000, what amount should be reported as bad debt expense for the year?

$2,000

$3,000

$5,000

$7,000

Determine whether the account has a normal debit or credit balance

- A. B.	Account receivable
- A. B.	Bad debt expense
- A. B.	Allowance for doubtful accounts
- A. B.	Building
- A. B.	Accumulated depreciation
- A. B.	Copyrights
- A. B.	depreciation
- A. B.	armotization