16) Barley Co. uses the Balance Sheet approach to determine uncollectible accounts As of January 1, 2018, Barley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's gross accounts receivable have been uncollectible. Barley's gross accounts receivable as December 31, 2018 is $18,000,000. In its December 31, 2018, balance sheet, what amount should Farley report as allowance for uncollectible accounts? A) $160,000. B) $360,000. C) $520,000. D) $880,000 17) Splitter Corporation had total sales in the current year of $750,000 and credit sales of S650,000. The Accounts Receivable balance was $450,000 on the balance sheet date and the Allowance for Doubtful Accounts had a credit balance of $10,000 before adjusting entries. Bad debt expense is estimated as 2% of credit sales. The adjusting entry to record estimated bad debt cxpcnse would include a A) $13,000 debit to Allowance for Doubtful Accounts. B) $13,000 credit to Sales. C) $13,000 credit to Bad Debt Expense. D) $13,000 debit to Bad Debt Expense 18. The journal entry to replenish a petty cash fund includes which of the following: A) A credit to Petty Cash B) A debit to Petty Cash C) A credit to Cash D) A debit to Cash 19) San Mateo Company had the following account balances at December 31, 2018, before recording bad debt cxpense for the year: Accounts receivable $ 1,400,000 Allowance for uncollectible accounts (credit balance) 22,000 Credit sales for 2018 1,950,000 San Mateo is considering the following approaches for estimating bad debts for 2018: Based on 3% of credit sales Based on 6% of year-end accounts receivable What amount should San Mateo charge to bad debt expense at the end of 2018 under each method? Percentage of credit sales 36,500 58,500 $ 58,500 $ 117,000 Percentage of accounts receivable 62,000 $ 62,000 $ 84,000 95,000 A) Option A B) Option B C) Option C D) Option D