The objective of providing remedies for the breach of a sales contract is to: Select one: a. punish or penalize the party responsible for breaching the contract. b. encourage parties to rely on trade practices rather than express terms. c. put the injured person in the same position as if the contract has been performed. d. encourage parties to rely on oral contracts rather than written contracts.

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.)