27. An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,600 debit balance, the adjustment to record bad debts for the period will require a

a. debit to Bad Debt Expense for $4,500.

b. debit to Bad Debt Expense for $6,100.

c. debit to Bad Debt Expense for $2,900.

d. credit to Allowance for Doubtful Accounts for $4,500.

28. Doane Company receives a $7,000, 3-month, 6% promissory note from Ray Company in settlement of an open accounts receivable. What entry will Doane Company make upon receiving the note?

a. Notes Receivable 7,035

Accounts ReceivableRay Company 7,035

b. Notes Receivable 7,105

Accounts ReceivableRay Company 7,000

Interest Revenue 105

c. Notes Receivable 7,000

Interest Receivable 105

Accounts ReceivableRay Company 7,000

Interest Revenue 105

d. Notes Receivable 7,000

Accounts ReceivableRay Company 7,000