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2. A company has net credit sales of $600,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of a. $12,000. b. $13,000. C. $11,000. d. some other amount. 3. Under the allowance method, the entry to write-off an uncollectible account results in a debit to a. Bad Debts Expense and a credit to Accounts Receivable. b. Bad Debts Expense and a credit to Allowance for Doubtful Accounts. C. Allowance for Doubtful Accounts and a credit to Bad Debts Expense. d. Allowance for Doubtful Accounts and a credit to Accounts Receivable. 4. A company sells $400,000 of accounts receivable to a factor for cash less a 2% service charge. The entry to record the sale should not include a a. debit to Interest Expense for $8,000. b. debit to Cash for $392,000. c. debit to Service Charge Expense for $8,000. d. credit to Accounts Receivable for $400,000. 5. When an interest-bearing note is dishonored at maturity and ultimate collection is expected, the entry for the dishonoring, assuming no previous accrual of interest should include a. a debit to Allowance for Doubtful Accounts. b. only a credit to Notes Receivable. c. a credit to Notes Receivable and Interest Revenue. d. a credit to Notes Receivable and Interest Receivable