Question 1 2 pts At each year-end, Gandy Company uses the allowance method percent of receivables approach to estimate bad debts On December 31, 2019. it has outstanding accounts receivable of $78,000, and it estimates that 4% will be uncollectible. Allowance for Doubtful Accounts has a $400 debit balance before the adjustment in the adjusting entry to record bad debt expense for 2019, the company will o Debit Bad Debts Expense $3,120 credit Allowance for Doubtful Accounts $3,120 Debit Bad Debt Expense $3.520; credit Allowance for Doubtful Accounts $3520 Debit Allowance for Doubtful Accounts $3,120, credit Bad Debt Expense $3,120 o Debit Bad Debt Expense $3.020, credit Allowance for Doubtful Accounts $3,020 D Question 2 2 pts A company paid $12,000 cash for 12 months' rent for office space. In the journal entry, the company will: Debit Prepaid Rent $12000, credit Cash $12.000 Debit Prepaid Rent $12,000, credit Rent Expense $12,000 Debit Cash $12.000 credit Rent Expense $12.000 Debit Prepaid Rent $12,000 credit Accounts Payable $12,000 2 pts Question 3 On November 1, 2019 Bradley Company receives $7.000 cash in advance and promises to provide five months of services Bradley records this on November 1 by debiting Cash $7.000 and crediting Unearned Service Revenue $7.000. Bradley begins providing the services immediately. In the December 31, 2019 adjusting entry, Bradley will