(Income statement approach) The Allowance for Bad Debts account has a credit balance of $3,000 before the adjusting entry for bad debts expense. The company's management estimates that 4% of net credit sales will be uncollectible for the year 2019. Net credit sales for the year amounted to $270,000. What will be the balance of Allowance for Bad Debts on the December 31, 2019 balance sheet? O $3,000 O $13,800 O $7,800 O $10,800 Handbags, Inc. had 600 units of inventory on hand at the end of the year. These were recorded at a cost of $18 each using the last-in, first-out (LIFO) method. The current replacement cost is $16 per unit. The selling price charged by Handbags, Inc. for each finished product is $24. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Cost of Goods Sold will be O credited by $9,600 O debited by $1,200 O debited by $9,600 O credited by $1.200