A company purchased a computer that cost $10,000. It had an…

A company purchased a computer that cost $10,000. It had an estimated service life of five years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the second year of use for $5,000 cash. The company should report:

At December 31, Amy Jo’s Appliances had account balances in…

At December 31, Amy Jo’s Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible Accounts of $870 (credit balance) before adjustment. An analysis of Amy Jo’s December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 6% of accounts receivable. Bad debt expense for the year should be: