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Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $20,000. If the balance of the Allowance for Doubt is $8.000 debit before adjustment, what is the amount of bad debts expense for that Accounts period? a $34.000 b. $18.000 c. $33.000 d. $17.000 Using the allowance method, the uncollectible accounts for the year is estimated to be $28,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 credit before adjustment, what is the amount of bad debts expense for the period? a. $7.000 b. $21.000 c. $28,000 d. $35,000 In 2008, the Fitzu Co. had not credit sales of $750.000. On January 1, 2008. Allowance for Doubtful Accounts had a credit balance of $15,000. During 2008. $30,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis), If the accounts receivable balance at December 31 was $200,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2008? a. $15,000 b. $34.000 c. $35,000 d. $30,000 A truck was purchased for $120,000 and it was estimated to have a $24,000 salvage value at the end of its useful life. Monthly depreciation expense of $4,800 was recorded using the straight-line method. The annual depreciation rate is a. 20% b. 2% c. 8% d. 5% A factory machine was purchased for $75,000 on January 1, 2008. It was estimated that a $15,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 5,000 actual hours in 2008. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2008 would be a. $7,500. b. $12,000. c. $15,000. d. $6,000

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