Maine Corporation's unadjusted trial balance includes the following balances (assume normal balances): Accounts Receivable $850,000 Allowance for Doubtful Accounts 18,000 Bad debts are estimated to be 5% of outstanding receivables. What amount of bad debt expense will the company record? Select one: a. $18,000 b. $42,500 C. $41,600 d. $24,500 Equipment with a cost of $400,000 has an estimated salvage value of $25,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? Select one: a. $113,800 b. $93,750 C. $100,000 d. $82,500