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Brown Furniture Company decided to go after the younger customer base. In doing so, Ms. Brown offered a liberal credit would have a 4% bad debt expense. In 2016. sales under t is p actual bad $600.000. Accordingly, she estimated a bad debt expense of $24,000. Her actual bad debt expenses were far less than expected, at about 2%. Her 2017 sales under the program are $800,000. How much bad debt expense should be reported on comparative income statements based on this information? Humphrey Contractors purchased customized equipment in January, 2015 for $500,000. The manufacturer warranted the equipment for six years. Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value. After two full years, he now believes that the equipment will only last a total of five years. Compute his depreciation expense for 2017 if he switches to straight-line depreciation. $62, 500 $75,000 $93, 750 $100,000