1. "During the year, IM Co. had sales of $900,000 including cash sales of $200,000 and $700,000 on account. At year end, December 31, they have gross accounts receivable $100,000 and (unadjusted) $1,000 credit balance in Allowance for Doubtful Accounts. Historically, uncollectible accounts have been 5% of accounts receivable. Allowance for Doubtful Accounts on the Balance Sheet at December 31 should be" O '$3,950 "

O $4,000*

O '$4,950"

O '$5,000 "

O '$35,000"

2. Walmart purchased chairs for its office on account for $300 plus sales taxes in Manitoba where GST is 5% and PST is 7%. Walmart's journal entry will include:

O a debit to PST Payable for $21

O a credit to HST Payable for $ 36

O a debit to HST Recoverable for $ 36

O debit to Accounts Payable for $300

O none of the above