Final answer:
The original question does not provide enough information to determine if there were any bad debt recoveries for Macrosoft. The self-check question calculates the accounting profit of a firm, which is $50,000 after deducting the expenses from the sales revenue.
Step-by-step explanation:
The question regarding Macrosoft and its bad debt expense relates to its financial statements, specifically, to whether Macrosoft recorded any bad debt recoveries in the current year if they reported a bad debt expense of $121. To know if there were any recoveries, one would need additional information beyond what is presented in the question. The bad debt expense is simply the estimated amount of the company's receivables that they do not expect to collect.
As for the self-check question, if a firm had sales revenue of $1 million, spent $600,000 on labor, $150,000 on capital and $200,000 on materials, the firm's accounting profit would be the sales revenue minus all these expenses. Thus, the accounting profit would be $50,000 ($1,000,000 - $600,000 - $150,000 - $200,000 = $50,000).