105) 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 credit 800,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? A) $1,275 B) $1,775 C) $4,500 D) $4,800 E) $5,500 107) A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $800 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: A) $3,600 B) $3,568 C) $3,632 D) $2,800 E) $4,400 119) Honoring a note receivable indicates that the maker has: A) Signed. B) Paid in full. C) Guaranteed. D) Notarized. E) Cosigned. 120) Failure by a promissory notes' maker to pay the amount due at maturity is known as: A) Protesting a note. B) Closing a note. C) Dishonoring a note. D) Discounting a note. E) Depreciating a