Stock “ABC” is expected to pay a dividend of $1.5 per share in 1 month and a dividend of $2.5 per share in 3 months. The current price of stock “ABC” is $27.0 per share, and the risk-free rate of interest is 6% per annum with continuous compounding. Calculate the fair price of a 2-year forward contract on stock “ABC”.

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