Doorg1am paid $315,000 for office furniture. The furniture is depreciated using

Question

Doorg1am paid $315,000 for office furniture. The furniture is depreciated using the straight-line method and has an life of 7 years with zero salvage value. which of the following is the appropriate adjusting journal entry at the end of year three? A) DR. Depreciation Expense $ estimated service 45,000 CR. Accumulated Depreciation $ CR. Accumulated Depreciation $ Cr. Depreciation Expense Cr. Depreciation Expense 45,000 15,000 45,000 15,000 B) DR. Depreciation Expense 15,000 C) Dr Accumulated Depreciation 45,000 D) Dr Accumulated Depreciation 15,000 which of the following is true about IFRS CInternational Financial Reporting Standards)? A LIFO is not an acceptable method for calculating inventory B) Property plant, and equipment are not written down for impairment their market value declines Q) Research costs are expensed and development costs are capitalized Both A and C are correct

Explanation / Answer

Depreciation expense = 315000/7= 45000 per year.

Entry option A. is correct

Which of the following is true about IFRS:

option D. is correct

Uncollectible accounts allowance expense= 182500*4%= 7300

Option C. is correct

After passing the entry balance in uncollectible accounts = 7300+1000= 8300

Net realisable value of accounts receivable= 125000-8300= 116700

Option C is correct

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