Midterm Exam 2 Review-Solution

Midterm Exam 2 Review-Solution - ACCT 2101 Midterm Exam 2...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 2101 Midterm Exam 2 Review 1. Equipment was acquired on January 1, 2005 at a cost of $185,000. It had an estimated useful life of 10 years and an estimated residual value of $15,000. It was depreciated using the straight line method for 3 years. On January 1, 2008, the assets estimated life was changed from the original estimate to 8 years and the salvage value was increased to $20,000. On July 1, 2010, the asset was sold for $ 75,000. What amount was credited/debited to record the gain or loss on disposal? A. $23,375 Loss B. $2,000 Loss C. $8,000 Gain D. $ 23,500 Gain
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2. Shamrock Inc. sells Merchandise to customers on credit and uses the allowance method of accounting for uncollectible accounts. On June 3, 2007 Allowance for Doubtful Accounts had a debit balance of $3,600 and the Accounts Receivable account had a balance of $52,000. In July 2007, a customer whose account was written off in the year 2006 paid Shamrock $ 4,500 in partial payment of the original invoice of $6,600. Credit sales for the year 2007 were $250,000. If
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern