6. Excerpts of selected financial statements and notes from Fastenal's 10-K for the 2019 fiscal year are listed on the following pages. You will need to refer to those excerpts to answer the following questions Any dollar amounts in your answers should be reported in millions 4. Prepare any journal entries to record bad debts expense for the 2019 fiscal year. (1/2 point) b. Suppose the firm uses the income statement approach when estimating bad debts expense. What is the approximate percentage the firm used to estimate bad debts expense for the 2019 fiscal year? Assume all sales are made on account. (1/2 point) c. Suppose the firm uses the balance sheet approach when estimating bad debts expense. What is the approximate percentage the firm used to estimate the allowance for doubtful accounts for the 2019 fiscal year? Assume the firm does not age its accounts receivable (1/2 point) FASTENAL COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (Amounts in millions except share information) December 31 2019 2018 s 174.9 1672 741.8 Assets Current assets Cash and cash equivalents Trade accounts receivable net of allowance for doubtful accounts of $109 and $12.8, respectively Inventories Prepaid income taxes Other current assets Total current assets 1,366.4 7143 1,278.7 9.0 16.7 157.4 147.0 2.4572 2,3162 FASTENAL COMPANY AND SUBSIDIARIES Consolidated Statements of Earnings (Amounts in millions except earnings per share) For the year ended December 31 2018 2019 5,333,7 2017 4.390.5 S 4,965.1 Net sales Cost of sales Gross profit 2,818.3 2.5662 2.226.9 2,515.4 2.398.9 2,163.6 FASTENAL COMPANY Schedule IIValuation and Qualifying Accounts Years ended December 31, 2019, 2018, and 2017 (Amounts in millions) "Additions" Balance at Charged to "Other" Balance Description Beginning Costs and Additions "Les at End of Year Year ended December 31, 2019 Expenses (Deduction) Deductions of Year Allowance for doubtful accounts S 12.8 5.5 7.4 10.9 Insurance reserves S 37.6 69.7 0) 66.2 ) 41.1 Year ended December 31, 2018 Allowance for doubtful accounts 119 8.1 7.2 12.8 Insurance reserves S 39.0 66.9 (1) 68.3 (3) 37.6 Year ended December 31, 2017 Allowance for doubtful accounts 11.2 82 7.5 11.9 Insurance reserves 34.6 68.2 (1) 63.8 ) 39.0 Includes costs and expenses incurred for premiums and claims related to health and general insurance. Includes costs and expenses paid for premiums and claims related to health and general insurance