Computer equipment was acquired at the beginning of the year at a cost of $65,625 that has
Question:
Computer equipment was acquired at the beginning of the year at a cost of $65,625 that has an estimated residual value of $3,900 and an estimated useful life of 5 years.
a. Determine the depreciable cost.
$fill in the blank 1
b. Determine the double-declining-balance rate.
fill in the blank 2%
c. Determine the double-declining-balance depreciation for the first year.
$fill in the blank 3
2.
At the end of the current year, Accounts Receivable has a balance of $910,900; Allowance for Doubtful Accounts has a credit balance of $6,730; and sales for the year total $3,347,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
a. Determine the amount of the adjusting entry for bad debt expense.
$fill in the blank 1
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Adjusted Balance | ||
Accounts Receivable | $fill in the blank 2 | |
Allowance for Doubtful Accounts | fill in the blank 3 | |
Bad Debt Expense | fill in the blank 4 |
c. Determine the net realizable value of accounts receivable.
$fill in the blank 5
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren