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5. On January 1, 2019, ABC Co signed a ten-year non-cancellable lease for machinery. The terms of the lease called for ABC Co make annual payments of $200,000 at the end of each year for ten years ABC Co accordingly accounted for this lease transaction as a capital (finance) lease. The lease payments were determined to have a present value of $772,100 at an effective interest rate of 7%. It was also determined that the fair value of the machinery on January 1, 2019 was $781,200. With respect to this lease for the year ending December 31, 2019, ABC Co should report: (3 points) lease expense of $54,047 o interest expense of $54,684 lease expense of $54,684 interest expense of $54,047 6. Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $36,000. If the balance of the Allowance for Doubtful Accounts is $8,000 debit before adjustment, what is the amount of bad debts expense for that period? (2 points) General $44,000 $8,000 $36,000 $28,000