Rock Company uses the estimate of sales method of accounting for uncollectible accounts. Rock Co. estimates that 2% of all credit sales will be uncollectible. At the beginning of the year, on January 1, 2013, the Allowance for Bad Debts had a credit balance of $2863. During 2013, Rock Co. wrote off Accounts Receivable totaling $1938 and made credit sales of $137067. After the adjusting entry is posted, the December 31, 2013 balance in Bad Debts Expense would be:

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.