Does Diamond’s recording of the August 2010 ‘‘continuity’’ payments and August/September 2011 ‘‘momentum’’ payments as the purchases of fiscal 2010 and fiscal 2011, respectively, comply with the U. S. GAAP (Generally Accepted Accounting Principles)? Why or why not? Provide support from the accounting literature, including the FASB Concept Statements, in support of your argument

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.)