q1. At the end of the year, Overland Company has a $400,000 debit balance in Accounts Receivable. The Allowance for Uncollectible Accounts has a $3,500 credit balance. Just before making adjusting entries Overland is notified that one of its customers is in bankruptcy and will not pay the $500 owed to Overland. Sales totaled $700,000 for the period. Based on an aging of Accounts Receivable analysis, Overland estimated that $12,000 of accounts receivable may be uncollectible. Using the Aging of Accounts Receivable method, what is the bad debt expense for the period?

		$12,000
		$9,000
		$8,500
		$10,500

q2.

At the end of the year, Overland Company has a $400,000 debit balance in Accounts Receivable. The Allowance for Uncollectible Accounts has a $3,500 credit balance. Just before making adjusting entries Overland is notified that one of its customers is in bankruptcy and will not pay the $500 owed to Overland. Sales totaled $700,000 for the period. Overland estimated 1.5% of its sales may be uncollectible. Under the Percentage of Sales method, determine the bad debt expense for the period.

		$6,000
		$14,900
		$10,500
		$16,000