A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:

Project: A Project: B
Initial End-of-Year Initial End-of-Year
Investment Cash Flows Investment Cash Flows


$40,000 20,000 $90,000 $40,000
20,000
40,000
20,000
80,000
The financial analyst determines that the firm's required rate of return is 15%. His recommendation using NPV would be to .A. select both

B. select project A and reject B.

C. reject project A and select B.

D. reject both.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)