Question 10 1 pts What is the purpose of the allowance for bad debts account? O The Allowance for Bad Debts gives the company the option to provide discounts to certain customers. b. The Allowance for Bad Debts is another name for the bad debts expense account. The Allowance for Bad Debts is not a proper name for any account. O The Allowance for Bad Debts is a way to identify an amount of expected bad debts for a given period, and then eventually write the account off when a particular customer doesn't pay. Question9 1 pts A company uses the percent of accounts receivables method to determine its end of period adjustment for bad debts. At the end of the period, management estimated that 5% of the $100,000 accounts receivable balance would be uncollectible. Before any year-end adjustments, the allowance for doubtful accounts had a debit balance of $1,500. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Bad Debts Expense: $6,500 Allowance for Doubtful Accounts: $6,500 Bad Debts Expense: $5,000 Allowance for Doubtful Accounts: $5,000 Bad Debts Expense: $3,500 Allowance for Doubtful Accounts: $3,500 Accounts Receivable: $5,000 Bad Debts Expense: $5,000 Sales: $15,925