A company can estimate its bad debt expense using either the Percentage of Credit Sales method or the Aging of Accounts Receivable method Which of the statements below is correct (2 marks) If the Percentage of Credit Sales method is used and it is determined that $5,000 of credit sales will be uncollectible, Accounts Receivable will be debited by $5,000 and Bad Debt Expense for the company will be credited by $5,000 If the Aging of Accounts Receivable method is used and it is determined that $5,000 of credit sales will be uncollectible, Bad Debt Expense will be debited by $5,000 and Accounts Receivable for the company will be credited by $5,000 If the Percentage of Credit Sales method is used and it is determined that $5,000 of credit sales will be uncollectible, Bad Debt Expense will be debited by $5,000 and the Allowance for Doubtful Accounts will be credited by $5,000 If the Aging of Accounts Receivable method is used and it is determined that $5,000 of credit sales will be uncollectible, Accounts Receivable will be debited by $5,000 and Bad Debt Expense for the company will be credited by $5,000

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A company can estimate its bad debt expense using either the Percentage of Credit Sales method or the Aging of Accounts Receivable method. Which of

A company can estimate its bad debt expense using either the Percentage of Credit Sales method or the Aging of Accounts Receivable method. Which of the statements below is correct? (2 marks)

If the Percentage of Credit Sales method is used and it is determined that $5,000 of credit sales will be uncollectible, Accounts Receivable will be debited by $5,000 and Bad Debt Expense for the company will be credited by $5,000.
If the Aging of Accounts Receivable method is used and it is determined that $5,000 of credit sales will be uncollectible, Bad Debt Expense will be debited by $5,000 and Accounts Receivable for the company will be credited by $5,000.
If the Percentage of Credit Sales method is used and it is determined that $5,000 of credit sales will be uncollectible, Bad Debt Expense will be debited by $5,000 and the Allowance for Doubtful Accounts will be credited by $5,000.
If the Aging of Accounts Receivable method is used and it is determined that $5,000 of credit sales will be uncollectible, Accounts Receivable will be debited by $5,000 and Bad Debt Expense for the company will be credited by $5,000.