Reference no: EM133091149

Question - Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?

A building with an appraisal value of $158,000 is made available at an offer price of $177,000.  The purchaser acquires the property for $41,000 in cash, a 90-day note payable for $47,000, and a mortgage amounting to $83,000.  The cost basis recorded in the buyer's accounting records to recognize this purchase is?

A machine with a cost of $115,000 has an estimated residual value of $13,000 and an estimated life of 5 years or 19,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?