Chapter 14, Problem 5CP

The information in the following table comes from the $\text{2}0\text{17}$ financial statements of QuickBrush Company and Smilewhite Corporation:

Notes to the $\text{2}0\text{17}$ Financial statements
	QuickBrush	Smilewhite
Goodwill	The company amortize Goodwill over $\text{2}0$ years.	The company amortizes goodwill over $\text{5}$ years.
Property, Plant, and equipment	The company uses a straight-line depreciation method over the economic lives of the assets, which range from $\text{5}$ to $\text{2}0$ years for buildings.	The company uses an accelerated depreciation method over the economic lives of the assets. which range from $\text{5}$ to $\text{2}0$ years for buildings.
Accounts receivable	The company uses a bad-debt allowance of $\text{2}\%$ of accounts receivable.	The company uses a bad-debt allowance of $\text{5}\%$ of accounts receivable.

Determine which company has the higher quality of earnings by discussing each of the three notes. $\left(\text{L}0\text{ 14}-\text{4}\right)$