2 s Under the allowance method, Bad Debt Expense is recorded for an amount that the company estimates B when an individual account is written off C when the loss amount is known. D several times during the accounting period wa not collect. Use the following information for questions 7 & 8 Leed Corporation beught equipment on lanuary 1, 2016.The equipment cost $75,000 and had an expected salvage value of $20,000. The Sfe of the equipment was estimated to be 5 years 7 The book value of the equipment at the beginning of the third year would be A $22,000 8 $55,00o C $75,000 O $53,000 8 The depreciation expense using the straight-line method of depreciationis A $15,000 8 $18,75o C $11,000 D None of the above Light Co. holds Dark Inc.'s $30,000, 6 month, 5% note. The entry made by Light Co. when the note is collected, assuming no interest has previously been accrued is: A Cash 30,750 30,000 750 Note Receivable Interest Revenue Note Receivable Note Receivable 8 Cash 30,000 30,000 C Cash 31,500 30,000 1,500 Interest Revenue D Cash 30,750 Note Revenue 30,000 Interest Revenue 750 Retail Corp. purchased land for a new parking lot for $35,000. The paving cost $40,000 and the lights to liluminate the new parking area cost $15,000. Which of the following statements is true with respect to these additions? 10 A 8 c D $90,000 should be debited to Land $55,000 should be debited to Land Improvements $75,000 should be debited to Land $90,000 should be debited to Land Improvements