nts) On January 1, 2017, Colora Printers purchased a priner er to last for four

Question

nts) On January 1, 2017, Colora Printers purchased a priner er to last for four years and has a residual value of $2.000 400,000 jobs in total. 3, and 70,000 in year 4. C December 31, 2017, using i for $82,000. It expects ie . The printer is expected to pri expect to print 138,000 jobs in year 1; 115,000 in year 2,80,000 in ear ompute the depreciation expense on the printer for the year a) Straight-line method. b) Units of production c) Double declining balance method d) Using the same information, compute the depreciation expense for 2018 (2d year) using the double declining balance method. e) Prepare the journal entry to record the depreciation expense figured in (a) above 2. (11 Points Total) Ranger Co. uses the allowance method to measure bad debts. Before any adjusting journal entries on December 31, Ranger Co. had an Accounts Receivable balance of $38,000 and a credit balance of $400 in their Allowance for Bad Debts account. During the year they had sales on account of $160,000. bad debts as a percentage of Accounts Receivable. They estimate that they will not be ab to collect 5% of Accounts Receivable (4 points). a) Prepare the adjusting journal entry to record bad debts expense assuming Ranger estimate b) Instead, prepare the adjusting journal entry to record bad debts expense assuming Ra estimates bad debts as 2% of credit sales (4 points). c) On Jan 4, 2018, Ranger Co. finds out that Jones Co. will not pay the $300 that they o What is the journal entry to write off this account (3 points)?

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Part-2

a. Straight Line Method (52000-2000)/4 12500 b. Units of Production Year Print Ratio Depreciation (52000-2000)*Ratio 1 135000 0.3375 16875 2 115000 0.2875 14375 3 80000 0.2 10000 4 70000 0.175 8750 400000 1 50000 c. Double Declining Balance Straight Line Rate 12500/50000=25% Rate for Double Declinng Balnce 25*2=50% Depreciation for First Year 52000*50%=26000 d. Second Year Book Value start of first year 52000-26000 26000 Second Year Depreciation Dep-Salvage Value 26000-2000 24000 e. Journal Entry Depreciation Expense Debit 12500 Accumulated Depreciation Credit 12500

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