What is the type of account and normal balance of Allowance for Doubtful Account

Question

What is the type of account and normal balance of Allowance for Doubtful Accounts? Asset, debit Asset, credit Contra asset, credit Contra asset, debit Machinery was purchased on January 1,2010 for dollar 1,000. The machinery has an estimated life of 7 years and an estimated saivage value of dollar 9,000. Double-declining balance depreciation for 2011 would be dollar 10,500 dollar 10,408 6,000 dollar 10, 929 The inventory data for an item for November are: Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO? dollar 580 dollar 610 dollar 600 dollar 590 Isaac Co. Sells merchandise on credit to Sonar Co in the amount of dollar 9,600. The invoice is dated on April 15 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? dollar 96, April 25 dollar 80, April 30 dollar 96, April 30 dollar 192, April 25

Explanation / Answer

47. e. Contra asset , credit

48. b. 10408

Straight line depreciation percent = 100% / 7 = 14.29%

Depreciation rate = 2* 14.29% = 28.57%

depreciation for 2010 = 51000 * 28.57% = 14571

depreciation for 2011 = 36429 * 28.57% = 10408

49. a. 580

Cost of goods sold:

NOV 4 Sales 10@ 19 = 190

NOV 17 Sales 10@19 = 190

10@20 = 200

580

  

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