Ayayai corp. uses the percentage of receivables method for recording bad debts expense. the accounts receivable balance is $200,000 and credit sales are $1,000,000. management estimates that 4% of accounts receivable will be uncollectible.
what adjusting entry will ayayai corp. make if the allowance for doubtful accounts has a credit balance of $2,000 before adjustment?

a. bad debt expense 8,000; allowance for doubtful accounts8,000
b. bad debt expense 6,000; allowance for doubtful accounts 6,000
c. bad debt expense 6,000; accounts receivable 6,000
d. bad debt expense 8,000; accounts receivable 8,000

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.