Determine the amount of the adjustment for bad debts given: Bad debts are estimated to be 3% of credit sales Accounts receivable balance $600,000 Allowance for bad debts balance (credit) $200 Net Credit Sales $215,000 $ 1. Using the aging method, estimated uncollectible accounts are $3,200. If the balance of Allowance for Doubtful Accounts is $550 credit before adjustment, what is a Bad Debts Expense for the period? O $3,750 O $2,650 $3,200 O $550 Open Range Foods writes off a bad debt of $400 on a specific customer account. The journal entry for this transaction under the direct write off method would include: O a credit to Allowance for Doubtful Accounts. O a credit to Bad Debts Expense. O a debit to Bad Debts Expense. O a debit to Allowance for Doubtful Accounts. Gross Accounts Receivable is $39.000. Allowance for Doubtful Accounts has a credit balance of $300. Net credit sales for the year are $190,000. In the past, 2% of credit sales had proved uncollectible. What would be the adjusted balance of the Allowance account under the income statement approach? O $4,880 $4,100 $3,800 O $3,500 Using the balance sheet approach, the balance in Allowance for Doubtful Accounts is taken into consideration when finding the adjustment using the balance sheet approach. O True O False