Compute the amount of the required adjustment, if any, to reconete net income to net casth provided (used) by operating netivities for the year ended December 31, 2013 o Select trom the list below the proper treatinent code for the required adjustiment Code Treatment Add back to net inconie Deduct ftoni net income. No adjustment to net income Item Amount Code 1. During the year, Herbawi has outstaneing accouats receivable totaling $1 million as of December 31, 2013. There is also a debit balarice of $12,000 in the allowance for doubtiul accounts. If the company estimates that 4% of its outstanding receivables will be uncollectible. Compute the amount of bad debt expense recognized for the year, and select the proper treatment code E> Aco 2. On November 20, 2013, Herbawi purchased 4,000 sharcs of Paltel Ine. for $30 per share. The investment was classified as a (ding security. At December 31, 2013 the market priee of Paltel, Inc.'s stock was $33 per share. Compute the amount of unrealized holding gain or loss recognized for the year, and select the proper treatment code Herbawi purchased $300,000 of S, 5 year bonds ayailible for sale securities from PADICO, Inc. on January 1, 2013, with nterest payable on July 1 and January 1 The bonds sold.for 3312001) at an effective interest rate of 7%. Herbawi uses the effective interest method. At Decembei 31, 2013, the fair value of PADICO, Inc. bonds was $318,000. Compute the amount of unrealized holding gain or loss recognized for the year, and select the proper treatment code