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Problems (also attached):
10. An article recently appeared in the Wall Street Journal indicating that companies are selling their receivables at a record rate. Why are companies selling their receivables?
29. How is a gain or loss on the sale of a plant asset computed?
34. What are natural resources, and what are their distinguishing characteristics?
35. Explain what depletion is and how it is computed.
BE1-2 Record the following transactions on the books of Essex Co.
(a) On July 1, Essex Co. sold merchandise on account to Harrard Inc. for $16,000, terms 2/10, n/30.
(b) On July 8, Harrard Inc. returned merchandise worth $3,800 to Essex Co.
(c) On July 11, Harrard Inc. paid for the merchandise.
BE1-15 Graig Mabasa Company acquires a delivery truck at a cost of $30,000. The truck is expected to have a salvage value of $2,000 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method.