At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 904,000 Credit sales 304,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 129,000 debit Allowance for doubtful accounts 5,400 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credit sales, (b) 1% of total sales and (c) 6% of year-end accounts receivable.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.