Q1 Gross Accounts Receivable is $17,000. Allowance for Doubtful Accounts has a credit balance of $100. Net credit sales for the year are $120,000. In the past, 2% of credit sales had proved uncollectible, and an aging of the receivables indicates $2,100 as uncollectible. What would be the adjusted balance of the Allowance account under the balance sheet approach?

		$2,000
		$2,500
		$2,100
		$2,200

Q2Gross Accounts Receivable is $20,000. Allowance for Doubtful Accounts has a credit balance of $400. Net credit sales for the year are $125,000. In the past, 2% of credit sales had proved uncollectible, and an aging of the receivables indicates $1,500 is doubtful. Under the balance sheet approach, Bad Debts Expense for the year is:

		$1,900.
		$2,900.
		$2,500.
		$1,100.