Homework:Ch 3 Hwk Question 5, BMC3-17 (similar to) HW Score: 8%, 8 of 100 points Score: 0 of 2 During the current​ year, Company increased its variable​ SG&A expenses while keeping fixed​ SG&A expenses the same. As a​ result, ​'s A. Inventory amounts booked under the financial accounting income statement will be lower than under the contribution income statement. B. Contribution margin will be​ higher, while its gross margin will remain the same. C. Contribution margin and gross margin will be lower. D. Operating income will be the same under both the financial accounting income statement and contribution income statement.

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?