New labs just announced that it has received a patent for a product that will eliminate all flu viruses. this news is totally unexpected and viewed as a major medical advancement. which one of the following reactions to this announcement indicates the market for new labs stock is efficient?
a. the price of the new labs stock remains unchanged.
b. the price of new labs stock increases rapidly and then settles back to its pre-announcement level.
c. the price of new labs stock increases rapidly to a higher price and the remains at that price.
d. all stocks quickly increase in value and then all but new labs fall back to their original values.
e. the value of all stocks suddenly increase and then level off at their higher values.

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?