Two national companies both sell a variety of soaps and lotions. when looking at the books, though, one company lists goodwill as an asset, but the other company does not. what does this tell you about these companies? a : the first company purchased an entire business to expand the company, whereas the second company likely has not yet purchased another entire business. b : the first company regularly donates to charitable causes, whereas the second company does not donate to charitable causes. c : the first company purchased patents above market value to expand their product line, whereas the second company likely developed all of their patents in-house. d : the first company added research and development costs as an intangible asset, whereas the second company expensed their research and development costs immediately.

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?