Nancy is a highly respected person within her community. she is hispanic in a largely caucasian-populated area. since nancy was looking for a new job, she went to a new company in the area called xyz coffee, where she applied for a position. after the interview, nancy felt confident that she would be hired because of her qualifications. however, she did not get a call back. initially, nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. the company had hired an inexperienced caucasian male with a history of unemployment. at this point, nancy was quite aggravated, but she left the issue alone. she ended up asking an associate for an espresso machine. the employee informed nancy where the machine was located and retrieved it for her. nancy asked if there were any other espresso machines of higher quality. when the associate said no, nancy purchased the item and left. after she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her. nancy asked where they had purchased it, and they responded, "xyz coffee."

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100