Two months ago, Alpha received a purchase order and agreed to manufacture computer servers for Epsilon Unlimited. Under the terms of the contract. Epsilon will pay Alpha a total of $600,000 for this equipment. Epsilon can cancel the contract if it so chooses but must pay Alpha for work completed to date. However. Alpha believes that if Epsilon did cancel the contract, they could still sell the servers to another internet provider and still make a profit. Alpha expects to deliver the products on February 1, and as of today, the job is 80% complete. The cost of the completed servers is expected to be $300,000. December 31. On January 1, almost four years ago, Alpha purchased equipment for $140,000. At that time, it was estimated that the equipment would have a useful life of four years, and have a salvage value of $20,000. As of this date, three years of depreciation has accrued. Alpha reevaluates their estimate and determines that rather than the four year useful life initially estimated, they now expect the equipment to last a total of eight years with no salvage value. Prepare the journal entry for depreciation. December 31. As of this date, the balance in Accounts Receivable is $270,000, and the Allowance for Uncollectable Accounts has a credit balance of $12,000. Total revenues for the year were $2, 900,000, and bad debts typically are about 1% of total sales. Alpha estimates bad debt expense based on the estimated net realizable value of Accounts Receivable, which for the current year, based on an aging schedule, is $230,000. Prepare the entry for bad debts. December 31. On April 30 of this year, Industries contracted with Alpha to rent one of Alpha's unused offices for a period of two years. prepaid the entire contract price of $48,000 on that date, and Alpha has made no other journal entries associated with this transaction since the initial entry, which was properly recorded