XXII. Auto World company has net credit sales of $600,000 for the year and it estimates that uncollectible accounts will be 1% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of? Show Calculations. XXIII. The Lanford Hospital purchased a new surgical saw for $64,000. The estimated salvage value is $2,000. The saw has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,500 hours in year 1; 2,100 hours in vear 22,400 hours in year 8; 1,900 hours in vear 4; 2,000 hours in year 5. Compute the annual depreciation for the first year under the units-of-activity method? Show Calculations