The information in the following exhibit comes from the notes to the financial statements of QuickBrush Company and SmileWhite Corporation:

Determine which company has the higher quality of earnings by discussing each of the threenotes.

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QuickBrush SmileWhite The company amortizes goodwill The company amortizes goodwill over 5 years. Property, plant, and equipment The company uses a straight-line depreciation method over the economic lives of the assets, which range from 5 to 20 years for buildings. The company uses a bad debt allowance of 2% of accounts receivable. e company uses an accelerated depreciation method over the economic lives of the assets, which range from 5 to 20 years for The company uses a bad debt allowance of 5% of accounts receivable receivable