Eric bought a new snowmobile from the North Pole Manufacturing Company. After buying the machine, Eric then modified the spark plugs and a few other things in order to soup it up. In February, just after a snowfall, Eric was driving the snowmobile when it tipped over, trapping him beneath it. His leg was severely burned when it lodged against one of the spark plugs. Eric now wants to sue North Pole for strict liability in tort. Eric: A) will likely win the suit, because of the faulty design of the snowmobile.
B) will likely lose the suit, because the machine has been altered since its manufacture.
C) has assumed the risk of using the snowmobile.
D) cannot sue the manufacturer, because horizontal privity is lacking.

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?