1. During 2018. its first year of operations, Hueco Tank Industries recorded sales of $11,550,000 and experienced returns of $700,000. Cost of goods sold totaled $6,760,000. The company estimates that 6.75% of all sales will be returned. How much will Hueco Tanks report as net sales on its 2018 income statement? A. $12,329,625 B. $11,550,000 c. $10,850,000 D. $10,770,375 E. $4,790,000 2. Natalicio Limited's year-end balance in accounts receivable is $2,100,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $29,500. An aging of accounts receivable at the end of the year indicates a required allowance of $50,000. If bad debt expense for the year was $42,000, what was the amount of bad debts written off by Natalicio Limited during the year? A. $121,500 B. $62,500 C. $42,000 D. $37,500 E. $21,500 RI