2.857 points QUESTION 26 1. The Andersen Company gets to the end of Year One and reports accounts receivable of $500,000 and credit sales for the period of $1.2 million. The ending allowance for doubtful accounts balance is a $1,000 debit balance as a result of the accounts written off for the year. Company officials have a choice of estimating bad debts as 4 percent of receivables or 2 percent of sales. Which of the following statements is true? If the percentage of sales method is selected, net income will be $2,000 lower than if the percentage of receivables method is selected If the percentage of sales method is selected, net income will be $1,000 lower than if the percentage of receivables method is selected If the percentage of sales method is selected, net income will be $3,000 lower than if the percentage of receivables method is selected If the percentage of sales method is selected, net income will be $4.000 lower than if the percentage of receivables method is selected