On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,900; Allowance for Doubtful Accounts, credit balance of $1,031. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible? $3,951. $6,905. $5,874. $1,031. $4,843. 2.During August, Arena Company sells $355,000 in product that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a balance of $11,700 before adjustment. Customers returned product for warranty repairs during the month that used $8,300 in parts for repairs. The entry to record the estimated warranty expense for the month is: Debit Warranty Expense $14,350; credit Estimated Warranty Liability $14,350. Debit Estimated Warranty Liability $17,750; credit Warranty Expense $17,750. Debit Warranty Expense $17,750; credit Estimated Warranty Liability $17,750. Debit Estimated Warranty Liability $8,300; credit Warranty Expense $8,300. Debit Warranty Expense $6,050; credit Estimated Warranty Liability $6,050