The Federal Reserve uses two definitions of the money supply, M1 and M2, because A. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. B. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function. C. M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of the money supply. D. M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply.

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?