The Exam Fun Co. had Accounts Receivable of $100,000 and a credit balance of $2,000 in Allowance for Doubtful Accounts on 12/31/10. The company estimates that 5% of the receivables will not be collected. Which of the following is the correct journal entry for recording the estimate of bad debt expense?A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
B. dr. Bad Debt Expense 5,000 and cr. Accounts Receivable 3,000
C. dr. Bad Debt Expense 5,000 and cr. Allowance for Doubtful Accounts 5,000
D. dr. Bad Debt Expense 7,000 and cr. Allowance for Doubtful Accounts 7,000

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.