PS.3 (LO2) Presented below is an aging schedule for Sycamore AG. . Worksheet Data Review Horte leset Fores P18 Page A B A C Not Yet Due 2 3 Customer 4 Anders 5 Blake 6 Cyr 7 Deleon 8 Others 9 Estimated 10 Percentage Uncollectible Total Estimated 11 Bad Debts 12 Total 22,000 40,000 57,000 34,000 132,000 285,000 40,000 16,000 D E F G Number of Days Past Due 1-30 31-60 61-90 Over 90 10,000 12,000 6,000 35,000 34,000 16,000 14,000 6,000 2,000 26,000 35,000 40,000 96,000 152.000 3% 6% 13% 25% 50% 38,610 4,560 1,920 3,380 8750 20,000 At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of 12.000. Instructions a. Journalize and post the adjusting entry for bad debts at December 31, 2020. b. Journalize and post to the allowance account the following events and transactions in the year 2021. 1. On March 31, a 1,000 customer balance originating in 2020 is judged uncollectible. 2. On May 31, a check for 1,000 is received from the customer whose account was written off as uncollectible on March 31. c. Journalize the adjusting entry for bad debts on December 31, 2021, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of 800 and the aging schedule indicates that total estimated bad debts will be 31.600. 19.3 (LO 2) on January 1, 2020, Pele Industries purchased the following two machines for use in its production process. Machine A: The cash price of this machine was R$35.000. Related expenditures included: sales tax R$2,200, shipping costs RS150, insurance during shipping R$80, installation and test- ing costs RS70, and R$100 of oil and lubricants to be used with the machinery during its first year of operations. Pele estimates that the useful life of the machine is 5 years with a R$5,000 residual value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was R$80,000. Pele estimates that the useful life of the machine is 4 years with a R$5,000 residual value remaining at the end of that time period Instructions a. Prepare the following for Machine A. 1. The journal entry to record its purchase on January 1, 2020. 2. The journal entry to record annual depreciation at December 31, 2020. b. Calculate the amount of depreciation expense that Pele should record for Machine B each year of its useful life under the following assumptions. 1. Pele uses the straight-line method of depreciation. 2. Pele uses the declining-balance method. The rate used is twice the straight-line rate. 3. Pele uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2020, 42,000 units: 2021. 37,000 units: 2022, 28,000 units; and 2023, 18,000 units. c. Which method used to calculate depreciation on Machine B reports the highest amount of deprecia- tion expense in year 1 (2020)? The highest amount in year 4 (2023)? The highest total amount over the 4-year period? P9.6 (L03) Yount Towing has equipment that cost 50,000 and that has been depreciated 22,000. Instructions Record the disposal under the following assumptions a. It was scrapped as having no value b. It was sold for 25,000. s. It was sold for 31.000