Advantages of the method of least squares over the high-low method include all of the following except:

a. A statistical method is used to mathematically derive the cost function.
b. Only two points are used to develop the cost function.
c. The squared differences between actual observations and the line (cost function) are minimized.
d. All the observations have an effect on the cost function.

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.)