32) The allowance method based on the idea that a given percent of a company's credit sales 32) for the period is uncollectible is: A) The aging of accounts receivable method. B) Factoring method. C) The percent of accounts receivable method. D) Direct write-off method E) The percent of sales method. 33) 33) Uniform Supply accepted a S4,800, 90 day, 10% note from Tracy Janitorial on October 17. If the note is dishonored, what entry should Uniform Supply make on January 15 of the next year? A) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800. B) Debit Accounts Receivable $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800. C) Debit Cash $4,920; credit Notes Receivable $4,920. D) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20, credit Notes Receivable $4,800. E) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920. 34) 34) Which of the following would be classified as a natural resource? A) Goodwill. B) Timber purchased by a lumber yard. C) Patent on an oil extraction process. D) Diamond mine. E) Land held as an investment. 35) 35) The term inadequacy, as it relates to the useful life of an asset, refers to: A) The condition where the asset's salvage value is less than its cost. B) An asset that is no longer useful in producing goods and services. C) The condition where the salvage value is too small to replace the asset. D) The insuffcient capacity of a company's plant assets to meet the companys growing production demands. E) An asset that is worn out 36 36) 36) Victory Company purchases office quipment at he beginming of the year ata co $15,000. The machine's useful life is estimated to be 7 years with a $1,000 salvage value. The book value at the end of 7 years is: D) $2,000. E) $14,000 CSO. B)$2,143. A)$1,000. 32) The allowance method based on the idea that a given percent of a company's credit sales 32) for the period is uncollectible is: A) The aging of accounts receivable method. B) Factoring method. C) The percent of accounts receivable method. D) Direct write-off method E) The percent of sales method. 33) 33) Uniform Supply accepted a S4,800, 90 day, 10% note from Tracy Janitorial on October 17. If the note is dishonored, what entry should Uniform Supply make on January 15 of the next year? A) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800. B) Debit Accounts Receivable $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800. C) Debit Cash $4,920; credit Notes Receivable $4,920. D) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20, credit Notes Receivable $4,800. E) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920. 34) 34) Which of the following would be classified as a natural resource? A) Goodwill. B) Timber purchased by a lumber yard. C) Patent on an oil extraction process. D) Diamond mine. E) Land held as an investment. 35) 35) The term inadequacy, as it relates to the useful life of an asset, refers to: A) The condition where the asset's salvage value is less than its cost. B) An asset that is no longer useful in producing goods and services. C) The condition where the salvage value is too small to replace the asset. D) The insuffcient capacity of a company's plant assets to meet the companys growing production demands. E) An asset that is worn out 36 36) 36) Victory Company purchases office quipment at he beginming of the year ata co $15,000. The machine's useful life is estimated to be 7 years with a $1,000 salvage value. The book value at the end of 7 years is: D) $2,000. E) $14,000 CSO. B)$2,143. A)$1,000