Question

QUESTION 5 You have just received notice that a customer of yours with an Account Receivab make is to of S100 has gone bankrupt and will not make my future payments you the allow e d the you O a debit Bad Debt Expense and credit Accounts Receivable Ob debit Bad Debt Expense and credit Allowance for Doubtful Accounts Oc debut Allowance for Doubtful Accounts and credit Accounts Receivable Od debit Allowance for Doubtful Accounts and credit Bad Debt spense QUESTION 6 a ted i n the dele den A machine with a cost of $75.000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18.000 hours What is the most of deprec balance method O a $18.750 Ob $37,500 O $17.500 O 0.516,667 QUESTION 7 Accounts Receivable is $50,000 The Allowance for Doubtful Accounts is $500 What is Not Realizate Value? O $50,000 O $65,000 O $45,000 O Carnot be determined QUESTIONS Which is NOT anwangible asset? O Franchise O Goodwill O Patent Land

Answer 1

5. You have just received notice that a customer of yours with an accounts receivable balance of $100 has gone bankrupt will not make any future payments. Following entry will be made:

b. debit bad debt expense and credit allowance for doubtful accounts.

Correct option is b.

6. Double declining depreciation rate = 2 x 1/useful life

= 2 x 1/4

= 50%

Depreciation for year 1 = 75,000 x 50%

= $37,500

Depreciation expense for year 2 = 37,500 x 50%

= $18,750

Correct option is a.

7.Net realizable value = Accounts receivable - Allowance for doubtful accounts

= 50,000-5,000

= $45,000

Third option is correct option.

8. Land is not intangible asset.

fourth option is correct option.

Kindly comment if you need further assistance.

Thanks‼!