Nuance Company had net credit sales for the year of $500,000. Nuance estimates that 2 percent of its net credit sales will never be collected. Prepare the entry to record Nuance's bad debt expense for the year? Nuance had accounts receivable of $100,000 at the end of the year. Show how the net accounts receivable balance would be reported on the balance sheet? Assume that the allowance for doubtful accounts had a beginning balance of zero. Why is A/R shown at net rather than just showing the full amount?