1. Corp. reports the following amounts at the end of 2021 (before adjustment):

Credit Sales for 2021	$250,000
Accounts Receivable, December 31, 2021	$45,000
Allowance for Uncollectible Accounts, December 31, 2021	$1,200 (credit)

What is the adjusting entry for uncollectible accounts on December 31, 2021, using the Percentage-of-Credit Sales Method? TrojanCorp. estimates that 4% of sales will not be collected.

		A. Not enough information.
		B. $5,500
		C. $8,200
		D. None of the other answers.
		E. $10,000

2. Corp. reports the following amounts at the end of 2021 (before adjustment):

Credit Sales for 2021	$250,000
Accounts Receivable, December 31, 2021	$45,000
Allowance for Uncollectible Accounts, December 31, 2021	$1,200 (credit)

What is the adjusting entry for uncollectible accounts on December 31, 2021, using the Allowance method? TrojanCorp. estimates that 8% of receivables will not be collected.

		A. $1,800
		B. $2,400
		C. $3,600
		D. Not enough information.
		E. None of the other answers.