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Answer:
(C) $745
Explanation:
The computation is given below:
For computing the bad debt expense, first we have to determine the ending account receivable balance which is shown below:
Ending account receivable balance = Beginning account receivable + credit sales - collections -
written off amount
= $20,000 + $70,000 - $74,700 - $400
= $15,300
So, the bad debt expense is
= Ending account receivable × given percentage
= $15,300 × 5%
= $745
Answer: The correct answer is "C. Comparative negligence."
Explanation: In Flo’s product liability suit against Girder, the company can most successfully raise the defense of comparative negligence.
The comparative negligence defense can be used successfully because although the company is guilty of the accident, Flo is somewhat guilty in the fact that I do not use any corresponding safety equipment.
