The data for a fixed asset owned by Company H is as follows:
Original cost $223,000
Useful life 7 years
Residual value $40,000
The journal entry to record the asset’s annual depreciation under the straight-line method is:

If CheapCo estimates bad debt expense as a percentage of its $159,000 credit sales, estimates 3% for this year, and has an Allowance for Doubtful Accounts with a credit balance of $1,230, how does it record bad debt expense?

Company A has a fixed asset with an original cost of $300,000, a residual value of $25,000, and a useful life of 10 years. The company also has land with an original cost of $1,000,000. Under the straight-line method, the journal entry to record the annual depreciation expense is:

  

Answer rating: 100% (QA)

Answer 1 Given Data related to fixed asset is as following Original cost 223000 Useful life 7 years ... View the full answer