2. The information in the following exhibit comes from the notes to the financial statements of QuickBrush Company and SmileWhite Corporation:

QuickBrush SmileWhite Goodwill The company amortizes goodwill over 20 years.

The company amortizes goodwill over 5 years.

Property, plant, and equipment The company uses a straightline depreciation method over the economic lives of the assets, which range from 5 to 20 years for buildings.

The company uses an accelerated depreciation method over the economic lives of the assets, which range from 5 to 20 years for buildings.

Accounts receivable The company uses a bad debt allowance of 2% of accounts receivable.

The company uses a bad debt allowance of 5% of accounts receivable.

Determine which company has the higher quality of earnings by discussing each of the three notes.