QUESTION 1 1. ABC Company is a new business. During its first year of operations, credit sales were $50,000 and collections on credit sales were 534,000. One account of $500 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible The ending balance of Allowance for Bad Debts account is $1,000 $465 $2,505 $1,500