Question 26:

Our company signed a 90-day 10% note for $100,000. Using a 360-day year, what is the total interest due on the maturity date?

Group of answer choices

$1,250.00

$1,562.50

$1,875.00

$2,500.00

Question 27:

Our company has an account receivable for $12,500 that we have now deemed uncollectible. We use the allowance method. Which of the following accounts would we debit to record the write-off?

Group of answer choices

accounts receivable

allowance for doubtful accounts

bad debt expense

cash

Question 28:

Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a credit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What amount will be debited to bad debt expense when we record the adjusting entry?

Group of answer choices

$3,000

$4,000

$5,000

$6,000

Question 29:

Our company uses the percentage of receivables method to estimate bad debt expense for the year. We had the following account balances on our unadjusted trial balance at the end of the year (December 31): accounts receivable, debit balance of $150,000; allowance for bad debts, debit balance of $1,000. We estimate that 3.5% of accounts receivable at the end of the year are uncollectible. What amount will be debited to bad debt expense when we record the adjusting entry?

Group of answer choices

$4,000

$4,250

$5,250

$6,250

Question 30:

The two methods used to estimate bad debt are:

Group of answer choices

FIFO and LIFO

allowance method and double-declining balance method

allowance method and direct write-off method

direct write-off method and units of production method

Question 31:

On January 1, our company purchased a truck for $95,000. The estimated useful life of the truck is 5 years. The residual value at the end of 5 years is estimated to be $15,000. What is the depreciation expense for the second year of use if we use the straight-line method?

Group of answer choices

$38,000

$16,000

$19,000

$32,000

Question 32:

Use the following information to answer these questions.

On January 1, our company purchased a truck for $95,000. The estimated useful life of the truck is 5 years. The residual value at the end of 5 years is estimated to be $15,000.

What is the depreciation expense for the second year of use if we use the double-declining balance method?

[ Select ] ["$22,800", "$25,200", "$57,200", "$60,800"]

What is the balance in accumulated depreciation at the end of the second year of use if we use the double-declining balance method?

[ Select ] ["$34,200", "$37,800", "$57,200", "$60,800"]

What is the book value at the end of the second year of use if we use the double-declining balance method?

[ Select ] ["$34,200", "$37,800", "$57,200", "$60,800"]

Question 33:

On January 1 of the current year (Year 1), our company acquired a truck for $75,000. The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 and 27,000 miles in Year 2. What is the balance in the accumulated depreciation account at the end of the second year of use after the adjusting entry if we use the units of production method?

Group of answer choices

$15,400

$18,900

$30,000

$34,300