(d) Sum-of-the-years'-digits method for 2027 (e) Double-declining-balance method for 2026 tA $ $ LA
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![Blue Company purchased equipment for $301,000 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $61,000. Estimated production is 20,000 units and estimated working hours are 10,000. During 2025, Blue uses the equipment for 1,010 hours, and the equipment produces 1,300 units.
Compute depreciation expense under each of the following methods: (Blue is on a calendar-year basis ending December 31.)
(Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 45,892.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f20cc49-c768-43e6-a9c4-6f0d40e2f4fd%2F70e2b68b-9f62-4609-a1dd-260084eb368b%2Flq3pvy9_processed.png&w=3840&q=75)
![**(d) Sum-of-the-years'-digits method for 2027**
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**(e) Double-declining-balance method for 2026**
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There are no graphs or diagrams in this image, only text and input boxes for entering monetary values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f20cc49-c768-43e6-a9c4-6f0d40e2f4fd%2F70e2b68b-9f62-4609-a1dd-260084eb368b%2Fydr3chf_processed.png&w=3840&q=75)
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