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1. An aging of a company's accounts receivable indicates, lhat $4,000 are eslimaled to l：)e uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjuslmenl; lo record bad debts For the period will require a (A) debit lo Bad Debts Expense for $4,000. (B) debit to Allowance for Doublkil Accounts for $2,800. (C) debit to Bad, Debts Expense for $2,800. (D) credil to Allowance for Doubtful Accounts for $4,000.

2. Becky's Blooms purchased a delivery van for $30,000, The company was given a $2,000 cash discount by the dealer, and paid $1,000 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Becky's Blooms increase its van account? (A)$30,000 (B) $28,000 (C) $29,500 (D) $2.9,000

3. A company purchased factory equipment for $150,000. It is estimated that the equipment will have a $15,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-dedining-ba丨ance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be ' (A) $60,000. (B) $36,000. (C)$54,000. (D) $32,400.

4, Joe's Copy Shop bought equipment for $60,000 on January 1, 2006, Joe estimated me useful life to be 3 years wilh no salvage value, and the straight lino method of depreciation will be used On January 1, 2007, Joe decides that the business will use the equipment for 5 years. What is the revised depreciation expense for 2007? (A) $20,000. (B) $8,000. (C) $10,000. (D)$15,000

5, A company sells a plant asset which originally cost $150,000 for $50,000 on December 31, 2006. The Accumulated Depreciation account had a balance of $60,000 afier the current year's depredation of $15,000 had been recorded The company should recognize a (A) $100,000 loss on disposal. (B) $40,000 gain on disposal. (C) $40,000 loss on disposal. (D) $25,000 loss on disposal.

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