1) Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected? A) Adjustment method for uncollectible debts B) Allowance method of accounting for bad debt c) Cash basis method of accounting for bad debts. D) Aging of notes receivable E) Direct write-off method of accounting for bad debts. 2) A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $375,000 debit 500 debit 800,000 credit All sales are made on credit. Based on past experience, the cormpany estimates 0.6% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? A) Debit Bad Debts Expense $4,300; credit Allowance for Doubtful Accounts $4,300. B) Debit Bad Debts Expense $5,300; credit Allowance for Doubtful Accounts $5,300. C) Debit Bad Debts Expense $2,130; credit Allowance for Doubtful Accounts $2,130. D) Debit Bad Debts Expense $4,800; credit Allowance for Doubtful Accounts $4,800. E) Debit Bad Debts Expense $2,630; credit Allowance for Doubtful Accounts $2,630. 3) On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $95,250 Allowance for Doubtful Accounts, credit balance of $921. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible? A) $4,794. B) $5,715. C) $5,770. D) $5,660. E) $6,636