On January 1, 2019 Your Company had a $30,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During the year, Your Company provided $120,000 of service on account. The company collected $124,000 cash from account receivable. Bad debts are estimated to be 6% of sales on account. How much bad debts expense will be recognize on the 2019 income statement? $1,800 $7,440 $7,200 $1,560. Question 2 10 pts Your Company accepted credit card receivables in exchange for $50,000 of services provided to customers. The credit card company charges a 3% service charge. This transaction would increase expenses by $1,500. increase cash by $50,000. increase Retained Earnings by $50,000. decrease liabilities by $1,500. increase Accounts Receivable by $48,500