13. Magenta Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $500,000 and credit sales are $3,000,000. Management estimates that 2% of accounts receivable will be uncollectible. What adjusting entry will Magenta Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $2,000 credit balance before adjustment? a. Bad Debt Expense ...... 10,000 Allowance for Doubtful Accounts 10000 b. Bad Debt Expense 10,000 Accounts Receivable 10,000 C. Bad Debt Expense 8,000 Accounts Receivable 8,000 d. Bad Debt Expense ... 8,000 Allowance For Doubtful Accounts 8,000 14. During 2020, Jones Inc. had sales on account of $150,000, cash sales of $75,000, and collections on account of $130,000. In addition, they collected $2,750 which had been written off as uncollectible in 2019. As a result of these transactions, the change in the accounts receivable balance indicates a a. $17,250 increase. b. $20,000 increase. c. $75,000 increase. d. $150,000 increase