1 Everest Company has histori istorically reported bad debt expense of 5% of sales in each quarter . For the current year , the entity allowed the same procedure in the three a Harters of the year . However , in the fourth quarter , the entity determined that bad debt expense for the entire year should be P450 000 . Sales in each quarter of the year were first quarter P 2 000 000 , second quarter P 1 500 000 , third quarter P 2 500,000 and fourth quarter P4 , 000 000 . What amount of bad debt expense should be recognized for the fourth quarter ? a . 200.000 150.000 300.000 400.000