42. When merchandise is sold and delivered but cash has not been collected (i.e. sold on credit) the proper entry includes: A. a credit to accounts receivable B. a credit to unearned revenues C. a debit to accounts receivable D. a credit to cash 43. Kroger Co. uses the allowance method to calculate uncollectible accounts. At the end of its first year of operations, December of 2016, it estimated $10,000 of their receivables would not be collected. Kroger has not reserved for uncollectible accounts before this. The proper adjusting entry to account for uncollectible accounts would be: A. Uncollectible Accounts 10,000 Allowance for Bad Debts 10,000 10,000 10,000 B. Allowance for Bad Debts Accounts Receivable 10,000 10,000 C Bad Debts Expense Accounts Receivable D. Bad Debts Expense Allowance for Bad Debts 10,000 10,000 44. In 2015 Jacobsen had credit sales of $10,000,000. During 2015, Jacobsen's December 31, 2015, allowance for uncollectible accounts was $20,000 before the adjusting entry. Under the percent of sales method and using 1% of credit sales as an estimate of bad debt, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2015 after the adjusting entry? A. $100,000 B. $20,000 C. $80,000 D. $120,000