Troy company budgeted $12 million for customer service costs, but actually spent only$10 miliion. which of the following statements is the best course of action for management to take is this instance? a. management will investigat this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service. b. because this $2 million variance is favorable, management does not need to investigate further. c. management will investigate this $2 million unfavorable variance to try to identify and correct the problem. d. management should not investigat every major variance, especially an unfavorable variance.

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?