If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data?

Sep. 1 Merchandise inventory (at cost) $87,258

Sep. 1-30 Purchases, net (at cost) 198,970 Sep. 1-30 Sales 136,986

a.$41,096

b.$95,890

c.$59,691

d.$190,338

An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $4,655. If Allowance for Doubtful Accounts has a $1,343 credit balance, the adjustment to record the bad debt expense for the period will require a

a.credit to Allowance for Doubtful Accounts for $1,343.

b.debit to Bad Debt Expense for $4,655.

c.debit to Bad Debt Expense for $5,998.

d.debit to Bad Debt Expense for $3,312.