Gummy Bear Company has provided the following information prior to any year-end bad debt

• Cash sales, $150,000
• Credit sales, $450,000
• SG&A expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• End of Year Balance: Accounts receivable (Gross), $110,000
• Sales discounts, $14,000
• Beg of Year Balance: Allowance for doubtful accounts credit balance, $1,200

Total A/R write-offs deemed uncollectible during the year was $1,000.

Gummy Bear Company prepares an aging of accounts receivable and the result shows that 3% of the gross A/R account is estimated to be uncollectible.

How much is the estimated bad debt expense for the year?

a. $5,500

b. $6,700

c. $4,300

d.$3,100

e.None of the above

ACME Construction uses the cost-to-cost method to recognize revenue. On December 31, 2017, ACME Construction Inc. signs a contract with the state of Washington to manufacture a bridge over the Westlake. ACME Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:

Contract price

Estimated construction costs

Estimated total profit

$78 million

$60 million

$18 million

During the three-year construction period, ACME Construction incurred costs as follows:

2020

2021

2022

$ 6 million

$36 million

$18 million

Which of the following represent the revenue recognized in 2020, 2021, and 2022?

1. $22.5 million, $30 million, $25.5 million
2. $6 million, $24 million, $12 million

C)$3.3 million, $19.8 million, $9.9 million

D)$7.8 million, $46.8 million, $23.4 million

E) None of the above