b. $98,000 c. $95,600 d. $95,200 LO.3 8. A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the: a. Direct write-off method. b. Aging of accounts receivable method. c. Timing method. d. Aging of investments method. 9. An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected is the: a. Allowance method of accounting for bad debts. b. Aging of notes receivable. c. Adjustment method for uncollectible debts. d. Direct write-off method of accounting for bad debts. 10. On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,250; Allowance for Doubtful Accounts, credit balance of $951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible? a. $951. b. $3,992. c. $4,884. d. $5,835. 11. A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: a. $4,600 b. $5,400 c. $6,200 d. $6,800 12. Darby uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry? a. $4,845 b. $4,180 c. $3,515 d. $3,700 2