Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method.

A. Record the year-end adjusting entry for 2018 bad debt using the income statement method.

B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.

C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.