3.000 (b) 29.School Supplies Company madet Pes Company made the following journal entries (1) to write off an account judged to be uncollectible and (2) to record bad debt expense for 2018 $1,000 (1) Allowance for doubtful accounts $1,000 Accounts receivable 3,000 (2) Bad debt expense Allowance for doubtful accounts As a result of the first entry only, the book value (netre the first entry only, the book value Inet realizable value) of Accounts receivable was (a) and a result of the second entry only, the book va receivable was (b): of the second entry only, the book value (net realizable value) of Accounts (a) A) increased decreased B) decreased decreased C) unchanged unchanged D) unchanged decreased 30. The Freight-in account a. increases the cost of merchandise purchased. b. is contra to the Purchases account. C. is a permanent account. d. has a normal credit balance. 31 Jackson Company uses the allowance method to account for bad debts. During 2018, a customer became bankrupt and a receivable of $5,000 was deemed uncollectible. The entry to record the uncollectible amount is: A. Allowance for doubtful accounts 5,000 Accounts receivable 5,000 B. Bad debt expense 5,000 Allowance for doubtful accounts 5,000 C. Allowance for doubtful accounts 5,000 Bad debt expense 5,000 D. Loss on receivables 5,000 Accounts receivables 5,000 32 A company had credit sales of $5.0 million for the year and estimates their bad debts to be 1% of net credit sales. The accountant for the company is thinking about switching to the aging of accounts receivable method and after preparing the aging schedule, the estimate equals $48,000. Accounts receivable has a $450,000 balance and the allowance for doubtful accounts has a credit balance of $3,000 prior to adjustment. The journal entry to adjust the books when the net credit sales method is used to account for bad debts will be: A) A debit to the bad debts expense account for $50,000 and a credit to accounts receivable for $50,000. B) A debit to bad debts expense for $47,000 and a credit to the allowance for doubtful accounts for $47,000. C) A debit to bad debts expense for $50,000 and a credit to the allowance for doubtful accounts for $50,000. D) A debit to bad debts expense for $47,000 and a credit to accounts receivable for $47,000