Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net credit sales will not be collected. To record the potential bad debts, Utopia Corporation would debit:

a. Bad Debt Expense and credit Accounts Receivable for $180.
b. Accounts Receivable and credit Allowance for Doubtful Accounts for $180.
c. Bad Debt Expense and credit Allowance for Doubtful Accounts for $180.
d. Allowance for Doubtful Accounts and credit Bad Debt Expense for $180.

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next