1. On December 31, 2013, Hanks Company's accounts receivable balance was of $300,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2013 was $5,970 (credit). During the year 2013, the company wrote off $6,450 of bad debts. What amount should be reported as the Bad debt expense for the year 2013?
Select one:
A. $5,520
B. $6,000
C. $6,200
D. $6,480
2. What would you do if the goal of maximizing the stock value was in conflict with other goals (i.e. customer and employee safety, the environment)? What steps would you take to avoid unethical or illegal behavior? Why?
3. Using relevent example, discuss three value drivers for a manufacturing firm.