MBA FA 500 March 21, 2021 Dr. Naser Abdelkarim Use the following information for questions 1 and 2. A trial balance before adjustments included the following: Debit Sales Sales returns and allowance Accounts receivable Allowance for doubtful accounts Credit $425,000 $14,000 43,000 760 a 1. If the estimate of uncollectible receivables is made by taking 2% of net sales, the amount of the bad debt expense is: S6,700 b. 58.220. c. $8,500. d. $9.740. 2. If the estimate of uncollectible receivables is made by taking 10% of gross account receivables, the adjusted balance of the allowance is: a. $3,540. b. $4,300. c. $5820. d. $5,060 3. The unadjusted balance of the allowance of uncollectible receivables for a given company at the end of 2016 was $500 debit. The company estimates the bad debt expense by taking 5% of the net sales which was S30000. The adjusted balance of the allowance of uncollectible receivables in the 2016 balance sheet should be: . $1500 b. S1000. c. $2000 d. None of the above. 4. Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $14,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment, what is the balance after adjustment? a.$2,000 b. $12,000 c.S14,000 d. $16.000 5. A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $2,000 prior to adjustment, its balance after adjustment will be a credit of a. $13,000. b. $15,000 c. $15,040. d. $17,000