On January 1, 2018, Callahan Boating Equipment Company received $72,000 when it issued bonds. When the bonds mature in four years, Callahan will pay bondholders a face amount of $80,000. Based on this information, the bonds were issued at a:

Select one:

a. $8,000 discount

b. $8,000 premium

c. $4,000 discount

d. $4,000 premium

At the beginning of the year, Theresas Bakery Supplies (TBS) had a balance in the allowance for doubtful accounts of $7,000. Throughout the year, TBS recovered $4,500 of accounts, and estimated bad debt expense to be $3,000. If the ending allowance for doubtful account balance is $8,500, what amount did TBS write-off during the year?

Select one:

a. $6,000

b. $9,000

c. $14,000

d. $7,500