Loazia inc. incurred the following costs during the year ended december 31, 2018: laboratory research aimed at discovery of new knowledge $270,000 costs of testing prototype and design modifications 75,000 quality control during commercial production, including routine testing of products 270,000 construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 the total amount to be classified and expensed as research and development in 2018 is a. $675,000. b. $975,000. c. $705,000. d. $405,000.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)