Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During Year 2, the company wrote off $4,640 in uncollectible accounts. In preparation for the company’s estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past DueReceivables Amount% Likely to be UncollectibleCurrent$ 104,0001%0 to 3045,0005%31 to 609,92010%61 to 904,44025%Over 903,80050%Total$ 167,160 What amount will be reported as uncollectible accounts expense on the Year 2 income statement?

What is meant by the term “double taxation”?

Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year’s depreciation would affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(32,000)= +(32,000) −32,000=(32,000)(32,000) Operating activityB.(16,000)= +(16,000) −16,000=(16,000) C.(36,000)= +(36,000) −36,000=(36,000)(36,000) Operating activityD.(36,000)= +(36,000) −36,000=(36,000)

How does the amortization of the principal balance on an installment note payable affect the amount of interest expense recorded each succeeding year?

Rosewood Company made a loan of $11,400 to one of the company’s employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively?

On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,800. On January 15, Year 1, an $800 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

At the time of liquidation, Owens Company reported assets of $360,000, liabilities of $220,000, common stock of $170,000 and retained earnings of $(30,000). What amount of the company’s assets are the shareholders entitled to receive?

Peterson Company’s petty cash fund was established on January 1 with $500. On January 31, a count of the fund revealed: $105 in cash remaining and vouchers for miscellaneous expenses totaling $400. If the company records both the disbursements and the replenishments to the fund, what is the overall effect on Peterson’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(400)= +(400) −400=(400)(395) OAB.(400)= +(400) −400=(400)(400) OAC.(500)= +(500) −500=(500)(500) FAD.(395)= +(395)5−400=(395)(395) OA

Which of the following statements is a reason why a company would buy treasury stock?

On January 1, Year 1, Hardwick Company purchased a truck that cost $53,000. The company expected to drive the truck 200,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $3,000. If the truck is driven 30,000 miles during Year 1, what would be the amount of depreciation expense for the year?