you would again save 10$ by buying the game downtown rather than at the campus store, but cost of making the trip is now $12, not $9. By how much would would your economic surplus be smaller if you brought the game downtown rather than at the campus store

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false