Quantum logistics, inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the alabama–georgia border. there are three cities being considered. after site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. the life of the warehouse is expected to be 12 years, and marr is 15 %/year.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)