Notes: The following have not yet been recorded in the trial balance accounts: i) Patronic Manufacturing provides for depreciation on equipment at 20% on a reducing balance basis. This should be recorded in production expenses. ii) Depreciation on motor vehicles is charged at 20% on a straight-line basis. This should be recorded in distribution expenses. iii) The directors have decided that the doubtful debt provision should be set at 4% of the value of the trade receivables at the year end. iv) Accounting fees relating to the year ended 31 December 2022 are estimated at £8,000. No bill has yet been received. Accountancy costs should be recorded in administration expenses. v) Inventory at 31 December 2022 is valued at £130,240.

Notes: The following have not yet been recorded in the trial balance accounts: i) Patronic Manufacturing provides for depreciation on equipment at 20% on a reducing balance basis. This should be recorded in production expenses. ii) Depreciation on motor vehicles is charged at 20% on a straight-line basis. This should be recorded in distribution expenses. iii) The directors have decided that the doubtful debt provision should be set at 4% of the value of the trade receivables at the year end. iv) Accounting fees relating to the year ended 31 December 2022 are estimated at £8,000. No bill has yet been received. Accountancy costs should be recorded in administration expenses. v) Inventory at 31 December 2022 is valued at £130,240.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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