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At the end of the current year, Accounts Receivable has a balance of $550,000, Allowance for Doubtful Accounts has a credit balance of $5,500, and sales for the year total $2,500,000. An analysis of receivables estimates collectable receivables as $25,000 Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts, respectively $19.500 and $525,000 $19,500 and $25,000 $30, 500 and $25,000 $30,500 and $525,000 30 The Merchant Company issued 10-year bonds on January 1. The 13% bonds have a face value of $100,000 and pay interest every January 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of $7,032 $8,790 $14,065 $7,500 229 19 The journal entry a company was to record the estimated product Warranty liability expense is debit Product Warranty Payable; credit Product Warranty Expense debit Product Warranty Expense, credit Product Warranty Payable debit Product Warranty Payable, credit Cash debit Product Warranty Expense Credit Cash