The following information was drawn from the accounting records of Schafer Company:

1. On January 1, Year 1, Schafer paid $72,000 cash to purchase a truck. The truck had a seven-year useful life and a $9,000 salvage value.

2. As of December 31, Year 1, Schafer Company had an $84,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account. Sales on account for Year 1 amounted to $450,000. Schafer estimates that 3 percent of credit sales will be uncollectible. 

Required

a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts. 

b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet. 

c. Record the year-end adjusting entry of uncollectible accounts expense.

d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.