21. At the start of the current year, Chad Company had a debit balance in the Allowance for Doubtful Accounts of $2,000, and a debit balance in Accounts Receivable of $680,000. During the year an adjustment of 3% of sales was made for estimated uncollectible accounts. Sales for the year (all on account) were $3,000,000 and $40,000 of accounts receivable were written off as worthless during the year. Collections of accounts receivable during the year were $2,340,000. No recoveries of accounts previously written off were made during the year. The year- end financial statements should show: A. Allowance for Doubtful Accounts with a credit balance of $50,000 B. Net Realizable value of Accounts Receivable of $1,292,000 C. Bad Debts expense of $88,000 D. Net realizable value of Accounts Receivable of 1,252,000 E. None of the above The following "selected" information is taken from the books of the Soul Company: (Note: You may not need to use all of the information below to answer these questions) Cash 100 Sales returns and allowances 20 Sales discounts 10 Sales 1,200 Inventory, 1/1/41 230 Cost of Goods Sold 520 Inventory, 12/31/Y1 140 Dividends 80 Selling expense 60 Administrative expense 90 Accounts receivable 200 Transportation expense 25 Accounts Payable 500 2. Net Sales for the period is:: A. $1,170 B. $1,190 C. $1,200 D. $1,230 E. None of the above. 3. Purchases for the period were: A. $450 B. $430 C. $400 D. $425 E. None of the above. 4. Goods Available for Sale for the period is: A. $660 B. $630 C. $655 D. $625 E. None of the above