Colley company uses the allowance method for bad debts and has the following information before the year end adjusting entry: accounts receivable $120,000 allowance for doubtful accounts $500 sales $800,000 18. if the company used the percentage of sale method and estimates bad debts to be 2% of sales what is the amount of bad debt expense: a) 2,400 b) 16,000 c) 16,500 d) 15,500 19. if the company uses the percentage of accounts receivable method and estimates 4% of accounts receivable will be uncollectible, what is the bad debt expense? a) 4,300 b) 4,800 c) 32,000 d) 5,300

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Read the following paragraph, and choose the best revision for one of its sentences. dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.

Zeta corporation is a manufacturer of sports caps, which require soft fabric. the standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. during the month of january, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. what is zeta corporation's materials price variance for the month of january?