Company X is in its first year of operations and has decided to use the percentage of sales method for estimating uncollectible accounts, 5 ales for the year totaled s112,000. company X has assessed uncollectible ascounts at 104 of sales. The company recorded $11,200 of bad debt expense. Write-offs for the period were 53,000 . What is the effect of this transaction? 1a. Bad debt expense is overstated by 3.000 1. Net income is overstated by 3,000 ci. None of the these d. cost of Goods sold is understated by 3,000