19. Tanning Company analyzes its receivables to estimate bad debt expense The accounts receivable balance is $300 000 and credit sales are $1,000,000. An Aging of accounts receivable shows that approximately 10 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? A Bad Debt Expense 26,000 Allowance for Doubtful 26,000 Accounts B. Bad Debt Expense 30,000 Allowance for Doubtful Accounts C. Bad Debt Expense 17,000 Allowance for Doubtful 17,000 Accounts D. Bad Debt Expense Allowance for Doubtful Accounts 30,000 20,000 20,000 20. JHJ Publishing utilizes the percentage of sales method in estimating bad debt expense and the estimated uncollectible rate is 10%. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An Aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? A Bad Debt Expense 13,000 Allowance for Doubtful 13,000 Accounts B. Bad Debt Expense 15,000 Allowance for Doubtful 15.000 Accounts C. Bad Debt Expense 100,000 Allowance for Doubtful 100,000 Accounts D. Bad Debt Expense 98,000 98,000 Allowance for Doubtful Accounts 21. When expenses exceed revenues, which of the following a. A net loss results b. A net income results c. Equal liabilities d. Assets are increased 143 Page