Please answer the question with clear answer Please answer the question with clear answer

Please answer the question with clear answer

Please answer the question with clear answer

1 Madeena Co. acquired the right to use 1,000 acres of land in South Africa to mine for silver. The lease cost is $50,000, and the related exploration costs on the property are $100,000. Intangible development costs incurred in opening the mine are $850,000. Madeena Co. estimates that the mine will provide approximately 100,000 ounces of silver. If Madeena Co. extracts 25,000 ounces in the rst year, Show the journal entry for depletion and statement of nancial position to show Silver Mine. Answer ......... 2. Sultan Company has credit sales of $2.60 million for year 2016. On December 31, 2016, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $ 14,905. Sultan prepares a schedule of its December 31, 2016, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. Accounts Receivable Receivable Uncollectible 48,000 61 to 90 days past due 32.75% 12,000 over 90 days past due 67.00% Calculate: 1. Using the aging of accounts receivable method, nd the estimate the required balance of the Allowance for Doubtll Accounts at December 31, 2016. 2. Prepare the adjusting entry to record bad debts