4 4 pts. In 2018, Hulk Corporation had total sales of $32.5 million, of which 85% was on credit. The allowance for doubtful accounts had a credit balance of $382,500 on January 1, 2018 and a credit balance of $17,000 on December 31, 2018 before any entry to record bad debt expense for 2018. The company estimates that 1.5% of credit sales are uncollectible. What is the amount of bad debt expense recognized on the income statement for 2018? $405,875 $365,500 $388,875 $414,375 Question 5 4 pts The following is an excerpt from the annual report of Ford Motor Company. Inventory at December 31st were as follows in millions for each year: Raw Materials, Work-in-Process Finished Goods. Total Inventory under FIFO LIFO Reserve Total Inventory under LIFO 2016 2017 15,372 17.588 23,772 27,116 39,144 44,704 (3.552) (3,596) 35.592 41.108 If Ford had a tax rate of 30%, what is the after-tax effect on net income if Ford had used FIFO cost-flow assumption instead of LIFO for 2017? Net income is the same under both methods. Net income would have been $44 million higher under LIFO. Net income would have been $3,596 million lower under LIFO. Net income would have been $30.8 million lower under LIFO