If inventory costs are rising which method gives the highest profit? Select one: a. Weighted average. O b. FIFO. O c. It is not possible to calculate which method gives the highest profit. d. LIFO. O Canada Ltd recorded sales of $420 000 during the year. Of these, 15% were on credit. Bad debts have averaged 11/2% of credit sales. The entry to estimate bad debt expense for the year is which of the following? Select one: O a. Bad debts expense Accounts receivable 945 945 b. Bad debts expense Allowance for doubtful debts 3 150 3 150 O c. Bad debts expense Allowance for doubtful debts 945 945 O d. Not one of the options O e. Bad debts expense Accounts receivable 3 150 3 150 Under the income statement method of estimating debts likely to be bad: Select one: a. an estimate of bad debts is made by the accountant. b. accounts receivable are 'aged' to establish likely bad debts. O c. a percentage, based on past experience, is applied to credit sales. d. a percentage, based on past experience, is applied to profit