1)Primm Industrial Contractors purchased a new truck on January 1st for $35,000. The truck is expected to have a useful life of five years with a salvage value of $4,500. It is estimated that the truck will be able to operate for 200,000 miles. In year one, Primm Industrial Contractors put 46,000 miles on the truck. What amount should be recorded in year two for depreciation expense if the double-declining-balance method is used?
2)Warren Company had net credit sales of $95,000 and collections of $86,000 throughout the year. The allowance account had a balance of $3,000 at the beginning of the year. During the year, $1,500 of accounts receivables was written off. Warren Company uses the aging-of-accounts method to account for uncollectible accounts. Based on aged receivables, Warren Company determines that $2,000 of accounts receivables are uncollectible. Warren will record ________ as bad debt expense.
3)On May 8th, a customer hires Custom Landscaping to do some yard maintenance. Custom Landscaping arrives on May 10th and completes the job on May 12th. The customer pays the invoice from Custom Landscaping on May 25th. Based on the matching principle, revenue for this job is recorded on ________.
4)Table 3Sales revenue
Cost of goods sold
Sales returns and allowances
Purchases of inventory
William Browning, withdrawals
Purchase returns and allowances
Refer to Table 3. Gross profit is_______.
5)Please refer to the table below.
Sales Returns and Allowances$2,400Sales Commissions$12,000Cost of Goods Sold$45,000 Sales Revenue$127,000Utilities$4,500Rent$15,000Sales Discounts$1,500Salaries$25,000Gain on sale of equipment$4,000Freight Out$4,500Depreciation Expense$3,000Interest Revenue$300
What is net income?