7. The Heritage Company has provided the following information: Allowance for doubtful accounts increased $25,000 and accounts receivable increased $400,000 during the year. Accounts written off as uncollectible totaled $10,000. Net sales totaled $3,250,000. Sales discounts were $90,000. The gross profit percentage was 30%. How much was Heritage's bad debt expense? A. $ 90,000 B. $ 35,000 C. $125,000 D. $ 55,000 E. None of the above. 8. Sprout Company has provided the following information: beginning inventory, $50,000; cost of goods sold, $575,000; and ending inventory, $35,000. Sprout also had sales of $900,000. How much were Sprout's inventory purchases? A. $590,000 B. $560,000 C. $610,000 D. $525,000 E. None of the above