True/False Indicate whether the statement is true or false. I. At t he end of a period (before adjustment), Allowance for Doubtful Accounts has a debit balance of s500. Net credit sales for the period totaled $800,000. If bad debt expense is estimated at 1% of net credit sales, the amount of bad debt expense to be recorded in the adjusting entry is $8,500 2. The maturity value of a 12%, 60-day note for $5,000 is $5,600. 3. When land is purchased to construct a new building, the cost of removing any structures on the land should 4. Both the initial cost of the asset and the accumulated depreciation will be taken off the books with the be charged to the building account. disposal of the asset. The difference between the balance in a fixed asset account and its related accumulated depreciation account is the asset's book value. 6. The proceeds fon discounting a $20,000, 6oday, note payable at 6% is S20.200. 7. Form W-2 is called the Wage and Tax Statement 8. Most employers are required to withhold federal unemployment taxes from employee earnings 9. Depending upon when an unfunded pension liability is to be paid, it will be classified on the balance sheet as either a long-term or a current liability. 10. A defined contribution plan promises employees a fixed annual pension benefit. 11. Organizational expenses are classified as intangible assets on the balance sheet. 12. The par value of common stock must always be equal to its market value on the date the stock is issued. 13. If s0,000 shares are authorized, 41,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 43,000. 14. A large retained earnings account means that there is cash available to pay dividends. 15. Before a stock dividend can be declared or paid, there must be sufficient cash 16. Bonds are sold at face value when the contract rate is equal to the market rate of interest 17. If the market rate of interest is 8% and a corporation's bonds bear interest at 7%, the bonds will sell at a premium