Assignment:
Q1) What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why or why not? Which depreciation method gives you the highest depreciation expense in the first year? Why?
Q2) Why would you use the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method? Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts? Why or why not? Does GAAP allow for the use of both methods at the same time? Why or Why not?
Q3) What is the purpose of subsidiary ledgers? What are the possible ramifications of not using subsidiary ledgers? How are subsidiary ledgers used in journalizing entries?
Provide complete and step by step solution for the question and show calculations and use formulas.