27. Rosco uses the allowance method of accounting for bad debts. Upon completing an aging analysis o accounts receivable, the accountant for Rosco estimated that $5,000 of the current $98,000 of accoun receivable would be uncollectible. The allowance for doubtful accounts had a $400 credit balance a year-end prior to adjustment. The amount of bad debt expense that should appear in Rosco's income statement for the year is A. $5,000. B. $5,400. C. $4,600. D. $400 E. Zero 28. Lincoln Corporation had beginning balances in its accounts receivable of $500,000 and of $75,000 in its Allowance for Uncollectible Accounts. The company estimates and records bad debt expense using the income statement method estimating 3% of credit sales as uncollectible. Collections on receivables were strong this year, totaling S1,500,000 and actual write offs of receivables were only $50,000. If the ending accounts receivable balance was $1,450,000, what was the total credit sales earned for the year? A. $1,050,000 B. $ 1,000,000 C. $2,400,000 D. $2,500,000 E. None of the above