On December 31, 2019 accounts receivable shows a normal balance of $75,000. Allowance for Doubtful Accounts has a credit balance of $2,500. Credit sales for the year were $500,000. An aging of accounts receivable shows that $3,500 in estimated uncollectible accounts. The company uses the aging of receivables method to recognize bad debt expense. Determine Bad Debt Expense.

Beachballs, inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. after the 3-year period, their growth will level off to its normal rate of 6%. dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. the last dividend paid was $1.00. if an investor requires a 10% return on beachballs, the price she is willing to pay for the stock is closest to: