Dr. Retained Earnings Cr. Dividends $58.000 . $58,000 d. Dr. Dividends Cr. Dividends Payable $58,000 $58,000 QUESTION 39 Tracie's Trikes Inc. is preparing its Statement of Cash Flows using the indirect method. Which items should be included in net cash flows from operating activities? a. Purchase of equipment. b. Retained earnings c. Repayment of bonds payable. d. Depreciation expense. QUESTION 40 Cottage Crafts Company uses the percent of credit sales method to record bad debt experise. The following information was recorded in the shop's general ledger for January Cash sales - 5120.000 Credit sales. 597.000 Balance in the Allowance for Doubtful Accounts-51.350 (credit balance Historical bad debt loss rate What is the balance in the Allowance for Doubtful Accounts after record ng Bad Debt Expense for the month of January a $30 6:5230 d. 12.320