Ward Co. estimates that 2% of credit sales will be uncollect…

Ward Co. estimates that 2% of credit sales will be uncollectible. Ward’s credit sales for the current year were $1 million. During the year, Ward wrote off $18,000 of accounts receivable. Ward’s allowance for doubtful accounts had a $15,000 balance on January 1. In its December 31 income statement, what amount should Ward report as bad debt expense?

Sydney Co. purchased a machine that was installed and placed…

Sydney Co. purchased a machine that was installed and placed in service on January 1, Year 1, at a cost of $480,000. Salvage value was estimated at $80,000. The machine is being depreciated over 10 years by the double-declining balance method. For the year ended December 31, Year 2, what amount should Sydney report as depreciation expense?