only question 2

Question 7 (1 point) Arctic Coolers sold a lunchbox for $10 that had a cost of $6. The journal entry to record the cost of merchandise sold is: debit Cost of Merchandise Sold $6; credit Merchandise Inventory $6 O debit Cost of Merchandise Sold $6; credit Sales $6 No journal entry is made to record the cost of merchandise sold. debit Merchandise Inventory $10; credit Cost of Merchandise Sold $10 Question 2 (1 point) Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? Bad Debt Expense 17,000 A) Allowance for Doubtful Accounts 17,000 19,500 Bad Debt Expense B) Allowance for Doubtful Accounts 19,500 22,000 Bad Debt Expense C) Allowance for Doubtful Accounts 22,000 65,000 Bad Debt Expense D) Allowance for Doubtful Accounts 65,000