Your company rents computers to local businesses and schools. You have 3,600 computers with a book value of $180,500. As a result of changing technology, your computers are more difficult to rent so you must drastically reduce your rental price, which causes a decrease in estimated future cash flows. The fair value of the computers is estimated to be $138,000 because of their outdated technology. Your company should report an asset impairment loss of:

$138,000.

$42,500.

$0

$180,500.

2.Under the allowance method for uncollectible accounts, the write-off of a specific account will not affect total assets

True

False

3.

What is the annual rate of interest being charged on a 3-month note receivable of $61,000 if the total interest is $2,440?

rev: 10_26_2015_QC_CS-30921

8%

6%

16%

4%

4.

Total doubtful accounts at the end of the year are estimated to be $33,500 based on an aging of accounts receivable. If the balance in the Allowance for Doubtful Accounts is a $12,100 debit before adjustment, what is current years Bad Debt Expense?

$21,400.

$12,100.

$33,500.

$45,600.