Which of the following describes the substitution effect? A.) As wages increase, an individual's total potential income rises, making him less likely to choose leisure over labor.

B.) As wages increase, an individual's total potential income rises, making him more likely to choose leisure over labor.

C.) As wages increase, an individuals leisure becomes less costly, making him more likely to choose leisure over labor.

D.) As wages increase, an individual's leisure becomes more costly, making him less likely to choose leisure over labor.

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.)