The following information is available for murphy company:

allowance for doubtful accounts at december 31, 2013 $16,000
credit sales during 2014 800,000
accounts receivable deemed worthless and written off during 2014 18,000

as a result of a review and aging of accounts receivable in early january 2015, it has been determined that an allowance for doubtful accounts of $11,000 is needed at december 31, 2014. what amount should murphy record as "bad debt expense" for the year ended december 31, 2014?

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?