Answer:
Part A
1. Straight-line.
Year Depreciation expenses ($)
2018 228,750
2019 228,750
2020 228,750
2021 228,750
2. Double-declining balance.
Year Depreciation expenses ($)
2018 460,000
2019 230,000
2020 115,000
2021 110,000
3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)
Year Depreciation expenses ($)
2018 198,913
2019 348,098
2020 258,587
2021 109,402
Part B
1. Straight-line.
Year Depreciation expenses ($)
2018 114,375
2019 228,750
2020 228,750
2021 228,750
2022 114,375
2. Double-declining balance.
Year Depreciation expenses ($)
2018 230,000
2019 345,000
2020 172,500
2021 86,250
2022 81,250
3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)
Year Depreciation expenses ($)
2018 99,457
2019 273,505
2020 303,342
2021 183,995
2022 54,701
Explanation:
Note: See the calculation in the attached excel file.
Answer:
December 31, 202x, adjustment to allowance for doubtful accounts
Dr Bad debt expense 48,000
Cr Allowance for doubtful accounts 48,000
Explanation:
total estimated bad debt = $600,000 x 10% = $60,000
allowance for doubtful accounts balance = $12,000
this account must be increased by $60,000 - $12,000 = $48,000
Allowance for doubtful accounts is a contra asset account that decreases the net balance of accounts receivable. In this case, the net balance of accounts receivable after the adjustment = $600,000 - $60,000 = $540,000
Saving money is important because of you run in to a problem like your car breaking down you need to have money to fix it. Also saving money is important because you will able to do things like going on vacation. Investing is important because I one thing goes bad you still have other incomes coming in.
Hope this helps
