8. The direct write-off method of accounting for bad debts A) Causes accounts receivable to appear on the balance sheet at their estimated net realizable value B) Is subject to a significant amount of estimation error C) Often fails to match bad debt losses with sales for the same period D) Requires that losses from bad debts be recorded in the period in which sales are made 9. Samson Corporation had sales of $1,000,000 during 2006, of which 80 percent were on credit. On December 31, 2006, Accounts Receivable totaled $80,000 and Allowance for Bad Debts had a credit balance of $1,200. Given the preceding information, if uncollectible receivables are estimated to be 1/2 of 1 percent of credit sales, the adjusting entry to account for uncollectible receivables as of December 31, 2006, would include a A) Debit to Bad Debt Expense of $4,000 B) Credit to Bad Debt Expense of $2,800 C) Debit to Bad Debt Expense of $5,000 D) Credit to Allowance for Bad Debts of $5,000